# Basic indicator approach (BIA)

- Canonical URL: https://www.gerhardmerk.de/basic-indicator-approach-bia
- Post ID: 593642
- Modified: 2023-07-25T20:58:38+00:00
- Language: en

## Definition

Method for determining the capital adequacy requirements for operational risk at institutions. In principle, an institution is required to hold capital in the amount of fifteen percent of the three-year average of the risk indicator described in the Solvency Regulation in order to cover operational risk. - See Credit Risk, Liquidity Regulation. - Cf. BaFin Annual Report 2009, p. 152 (BIA is mainly used by smaller and medium-sized institutions; scope for improvement). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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