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P.

50

2018 Pillar 3 Disclosures

Capital requirements for operational risk

Calculation of the Pillar 1 Regulatory Capital for operational risk is performed by applying the

percentages established in the standard method to the relevant revenue. The procedure includes

the following aspects:

Determination of relevant revenue.

Assignment of relevant revenue to business lines.

Application of weighting to the business lines.

Calculation of capital consumption

The following table indicates the capital consumptions at the close of 2018 for each line of

business:

Line of business

Weighting

Requirements

Trading and sales

18%

11,514

Commercial banking

15%

13,838

Retail banking

12%

46

Asset management

12%

0

Payment and settlement

18%

4,056

Agency services

15%

12,022

Retail brokerage

12%

0

Business funding

18%

65

Total

41,542

Thousands of euros.

Additionally, as mentioned in section 3.2.5, the bank applies a more stringent methodology than

that required by regulations, under the Pillar 2 framework.

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