2019-04-12 | BSD/DIR/GEN/LAB/12/011/8

Guidance Notes on the Calculation of Capital Requirement for Operational Risk for Non-Interest Financial Institutions in Nigeria

The Central Bank of Nigeria outlines capital requirements for non-interest financial institutions, focusing on operational risk. Two methods are provided: the Basic Indicator Approach (BIA) and the Standardized Approach (TSA). The BIA calculates capital requirements as a percentage of gross income, while the TSA assigns weights to different business lines. NIFIs must demonstrate effective operational risk management and adhere to business line mapping principles to use the TSA. The document also emphasizes the role of the Board and the Advisory Committee of Experts in governance and Shari'ah compliance.

Nigeria

Central Bank of Nigeria

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