The marginal coefficient is determined based on an organization's business indicator number identified by one of three buckets that the business indicator relates to.

The table on this slide illustrates the cutoffs for each of the three buckets as set by the regulators in the US European Union and the UK respectively for 2025 and the associated marginal coefficients, the coefficients apply on a marginal basis.

So for a US or European bank falling into bucket three, the first 1 billion of their business indicator has a 12% rate applied to it.

The next 29 billion has a 15% rate and any excess over that attracts a marginal coefficient of 18%, meaning that any business indicator above 30 billion, a further 18% of that balance needs to be held in operational risk capital.