# Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 laying down implementing technical standards with regard to supervisory reporting of institutions according to Regulation (EU) No 575/2013 of the European Parliament and of the Council (Text with EEA relevance), Division 4.1.2: Instructions concerning specific positions

Extent: E+W+S+N.I.

Columns
010-030
RELEVANT INDICATOR
Institutions using the relevant indicator to calculate the own funds requirement for operational risk (BIA, TSA and ASA) shall report the relevant indicator for the respective years in columns 010 to 030. Moreover, in case of a combined use of different approaches as referred in Article 314 CRR, institutions shall also report, for information purposes, relevant the indicator for the activities subject to AMA. The same shall apply for all other AMA banks.
Hereafter, the term ‘ relevant indicator ’ refers to ‘ the sum of the elements ’ at the end of the financial year as referred to in point 1 in Table 1 of Article 316 CRR.
Where the institution has less than 3 years of data on ‘ relevant indicator ’ available, the available historical data (audited figures) shall be assigned by priority to the corresponding columns in the template. Where, for instance, historical data for only one year is available, those data shall be reported in column 030. Where it seems reasonable, the forward looking estimates shall be included in column 020 (estimate of next year) and column 010 (estimate of year +2).
Furthermore, where there are no historical data on ‘ relevant indicator ’ available, the institution may use forward-looking business estimates.
040-060
LOANS AND ADVANCES (IN THE CASE OF ASA APPLICATION)
These columns shall be used to report the amounts of the loans and advances, as referred to in point (b) of Article 319(1) CRR, for business lines ‘ commercial banking ’ and ‘ retail banking ’ . Those amounts shall be used to calculate the alternative relevant indicator that leads to the own funds requirements corresponding to the activities subject to the alternative standard approach (point (a) of Article 319(1) CRR).
For the ‘ commercial banking ’ business line, securities held in the non-trading book shall also be included.
070
OWN FUND REQUIREMENT
The own fund requirement shall be calculated in accordance with the approaches used and in accordance withArticles 312 to 324 CRR The resulting amount shall be reported in column 070.
071
TOTAL OPERATIONAL RISK EXPOSURE AMOUNT
Article 92(4) CRR
Own funds requirements in column 070 multiplied by 12,5 .
080
OF WHICH: DUE TO AN ALLOCATION MECHANISM
Where a permission to use the AMA at consolidated level (Article 18(1) CRR) has been granted in accordance with Article 312(2) CRR, operational risk capital shall be allocated between the different entities of the group on the basis of the methodology applied by the institutions to consider diversification effects in the risk measurement system used by a EU parent credit institution and its subsidiaries or jointly by the subsidiaries of an EU parent financial holding company or an EU parent mixed financial holding company. The result of that allocation shall be reported in this column.
090-120
AMA MEMORANDUM ITEMS TO BE REPORTED IF APPLICABLE
090
OWN FUNDS REQUIREMENT BEFORE ALLEVIATION DUE TO EXPECTED LOSS, DIVERSIFICATION AND RISK MITIGATION TECHNIQUES
The own funds requirement reported in column 090 is the one of column 070 but calculated before taking into account the alleviation effects due to expected loss, diversification and risk mitigation techniques (see below).
100
(-) ALLEVIATION OF OWN FUNDS REQUIREMENTS DUE TO THE EXPECTED LOSS CAPTURED IN BUSINESS PRACTICES
In column 100, the alleviation of own funds requirements due to expected loss captured in internal business practices (as referred to in point (a) of Article 322(2) CRR) shall reported.
110
(-) ALLEVIATION OF OWN FUNDS REQUIREMENTS DUE TO DIVERSIFICATION
The diversification effect in column 110 shall be the difference between the sum of own funds requirements calculated separately for each operational risk class (i.e. a ‘ perfect dependence ’ situation) and the diversified own funds requirement calculated by taking into account correlations and dependencies (i.e. assuming less than ‘ perfect dependence ’ between the risk classes). The ‘ perfect dependence ’ situation occurs in the ‘ default case ’ , that is where the institution does not use explicit correlations structure between the risk classes, hence the AMA capital is calculated as the sum of the individual operational risk measures of the chosen risk classes. In that case, the correlation between the risk classes is assumed to be 100 % and the value in the column has to be set to zero. Conversely, where the institution calculates an explicit correlations structure between risk classes, it has to include in this column the difference between the AMA capital as stemming from the ‘ default case ’ and the AMA capital obtained after applying the correlations structure between the risk classes. The value reflects the ‘ diversification capacity ’ of the AMA model, that is the ability of the model to capture the not simultaneous occurrence of severe operational risk loss events. In column 110, the amount by which the assumed correlation structure decreases the AMA capital relative to the assumption of 100 % correlation has to be reported.
120
(-) ALLEVIATION OF OWN FUNDS REQUIREMENT DUE TO RISK MITIGATION TECHNIQUES (INSURANCE AND OTHER RISK TRANSFER MECHANISMS)
In column 120 the impact of insurance and other risk transfer mechanisms as referred to in Article 323 CRR shall be reported.
Rows
010
BANKING ACTIVITIES SUBJECT TO BASIC INDICATOR APPROACH (BIA)
This row shall present the amounts corresponding to activities subject to the BIA to calculate the own funds requirement for operational risk (Articles 315 and 316 CRR).
020
BANKING ACTIVITIES SUBJECT TO STANDARISED (TSA)/ALTERNATIVE STANDARDISED (ASA) APPROACHES
The own funds requirement calculated in accordance with the TSA and ASA (Articles 317, 318 and 319 CRR) shall be reported.
030-100
SUBJECT TO TSA
Where the TSA is used, the relevant indicator for each respective year shall be distributed in rows 030 to 100 amongst the business lines referred to in Table 2 of Article 317 CRR. The mapping of activities into business lines shall follow the principles described in Article 318 CRR.
110-120
SUBJECT TO ASA
Institutions using the ASA (Article 319 CRR) shall report for the respective years the relevant indicator separately for each business line in rows 030 to 050 and 080 to 100 and in rows 110 and 120 for business lines ‘ commercial banking ’ and ‘ retail banking ’ .
Rows 110 and 120 shall present the amount of the relevant indicator of activities subject to ASA, distinguishing between the amount corresponding to the business line ‘ commercial banking ’ and the amounts corresponding to the business line ‘ retail banking ’ (Article 319 CRR). There can be amounts for the rows corresponding to ‘ commercial banking ’ and ‘ retail banking ’ under the TSA (rows 060 and 070) as well as under the ASA rows 110 and 120 (e.g. if a subsidiary is subject to TSA whereas the parent entity is subject to ASA).
130
BANKING ACTIVITIES SUBJECT TO ADVANCED MEASUREMENT APPROACHES AMA
The relevant data for AMA institutions (Article 312(2) and Articles 321, 322 and 323 CRR) shall be reported.
Where different approaches are combined as indicated in Article 314 CRR, information on relevant indicator for activities subject to AMA shall be reported. The same shall apply for all other AMA banks.

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Source: https://www.legislation.gov.uk/eur/2014/680/annex/II/part/2/division/4/division/4.1/division/4.1.2 (the official version)
Page: https://openlegislation.uk/eu-regulation-2014-680/annex-II/part-2/division-4/division-4.1/division-4.1.2
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.