Let's look in more detail at how the business indicator is calculated.

Fundamentally, it is the gross income of the organization, but on a more technical basis, it is calculated based on three components, which are all derived using averages from the last three years.

Firstly, there's the interest lease and dividend components, which is the lower of the average net interest income.

That is interest income, less interest expense, ignoring negatives, or 2.25% of the interest earning assets of the bank, plus dividend income.

Next is the service components, which is the higher of the average fee income or fee expenses, plus the higher of other operating income or other operating expenses.

Finally, we have the financial components, which is the average of the firm's absolute trading gains or losses, plus the average of the absolute banking book gains or losses.

The aim of all the complexity in this calculation is to remove the possibility that a bank making a loss in any part of its business ends up with a lower regulatory capital requirement, resulting from a reduction in their business indicator, making losses doesn't make it any less likely that there will be an operational risk loss within the organization.