Calculate the capital charge for market risk

[Raj_S]

Hi David et al,



Probably a simple staright forward question . What is "Unused portion of limit"
in capital charge calculation equation below. ( referring to P2.Operational risk - page 12 bottom).
Charge(MR)= (F1 * VaR) + (F2 *Unused portion of limit)+ (F3 * excess)

Thanks

 

[Raj_S]

Thanks

 

[Raj_S]

Got it . thanks. that was just a silly Q from me