Arxo Findings Register · Arxo Law

ARXO-2026-0398 · Reported

Basel Framework: OPE25.8 ILM formula, BIC = 0

The OPE25.8 ILM formula has no rule for BIC equal to zero when a bucket 1 bank is allowed to use loss data.

Consequence

Position: Bucket 1 bank under discretion to use loss data, BI 0, losses 10 per year (LC 150) Reading a: Formula: LC/BIC with BIC 0 -> undefined Reading b: ILM=1 as bucket 1 rule -> ORC 0 Difference: undefined vs 0

Proposed correction

Clarify or correct the cited passage so that the rule and its references give one result for the stated case.

Issued by
Basel Committee on Banking Supervision
Act
Basel Framework OPE25 (in force 2027-01-01, published 2024-07-05)
Place
OPE25.8 ILM formula, BIC = 0
Record
Discrepancy
Class
Text of the act
Where it arose
The text of the act
Arxo's conclusion
Confirmed
Official text
Unchanged at last check
Last checked
2026-10-31

Evidence

Reproduced by execution. Quotations are verbatim from the official material; translations are ours and marked.

The ILM is defined as below, where the Loss Component (LC) is equal to 15 times average annual operational risk losses incurred over the previous 10 years:
Normative text · Basel Framework OPE25 (in force 2027-01-01, published 2024-07-05) · OPE25.8 ILM formula, BIC = 0 · Published 2024-07-05 · retrieved 2026-10-31 · SHA-256 f04841ee703c97f946d78a7daec5faca4269aeea456346fe8e634c52189b9efb · copy

How to check it without Arxo's tools

  1. Open Basel Framework OPE25 (in force 2027-01-01, published 2024-07-05) and find OPE25.8 ILM formula, BIC = 0. Compare the text with the quotation above. A copy is kept in this register: f04841ee703c97f9-OPE25@2027-01-01~2024-07-05.txt (SHA-256 f04841ee703c97f946d78a7daec5faca4269aeea456346fe8e634c52189b9efb, copy of the official file).
  2. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI models read the texts, built the examples and reviewed the findings.

Responsible institutions

Reported to

DateInstitutionChannelReference
2026-10-31Basel Committee on Banking Supervisione-mailhttps://mail.google.com/mail/u/0/#sent/KtbxLthRTjRNkqRtWGvxMWmXhVdckfWkGV

Responses

No response recorded.

History

  1. 2026-10-31Confirmed by Arxo
  2. 2026-10-31Entered in the register
  3. 2026-10-31Reported to Basel Committee on Banking Supervision (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0398, https://arxo.io/findings/ARXO-2026-0398/ (status as of 2026-10-31). Data: ARXO-2026-0398.json.