Chapter:	155L	Title:	Banking (Capital) Rules	Gazette Number:	E.R. 1 of 2012
Section:	32	Heading:	Provisions supplementary to section 31	Version Date:	09/02/2012

(1) Subject to subsection (2), an authorized institution which calculates its capital adequacy ratio on a consolidated basis shall do so using the same approach in calculating a relevant risk as it would be required to use if it were calculating that ratio on a solo basis.
(2) With the prior consent of the Monetary Authority, an authorized institution which calculates its capital adequacy ratio on a consolidated basis is not required to comply with subsection (1) if the institution demonstrates to the satisfaction of the Monetary Authority that it is not practicable for every member of its consolidation group to use the same approach to calculate the relevant risk of the group on that basis.
(3) Where an authorized institution which calculates its capital adequacy ratio on a consolidated basis uses the BIA approach to calculate its operational riskˇX

(a) subject to paragraph (b), the institution may, in calculating the gross income of its consolidation group in any given year of the last 3 years, offset a positive gross income of a member of the group in the given year with a negative gross income of another member of the group in that given year;
(b) the institution shall not, pursuant to paragraph (a), offset a positive gross income with a negative gross income between any of the last 3 years.

(a) subject to paragraph (b), the institution may, in calculating the gross income of its consolidation group in any given year of the last 3 years, offset a positive gross income of a standardized business line of a member of the group in the given year with a negative gross income of that standardized business line of another member of the group in that given year;
(b) the institution shall not, pursuant to paragraph (a), offset a positive gross income with a negative gross income between any of the last 3 years.