Regulatory Alerts2023-01-01
Guidance Note on Computation of Capital Charge for Operational Risk for Banks and Financial Institutions, 2023
The Bank of Tanzania mandates a standardized Business Indicator methodology to calculate operational risk capital charges for banks and financial institutions. Under this framework, capital requirements equal twelve percent of the Business Indicator, with regulators fixing the Internal Loss Multiplier at one to simplify calculations. Institutions must systematically collect historical loss data across six operational risk categories and submit solo and consolidated capital charge reports at prescribed intervals.
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