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12. Inclusion of Losses and BI Items Related to Mergers and Acquisitions

Effective from Dec 28 2022 - Dec 31 2022
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12.1The scope of losses and BI items used to calculate the operational risk capital requirements must include acquired businesses and merged entities over the period prior to the acquisition/merger that is relevant to the calculation of the standardized approach (ten years for losses and three years for BI).
 
12.2Losses and BI items from merged entities or acquired businesses should be included in the calculation of ORC immediately after the merger/acquisition, and should be reported in the first update of the bank’s total risk-weighted assets that comes after the merger/acquisition.