The ‘GRID’ And ‘LOOK UP’ Table Approach

In practice, all banks operating under Basel I will be the 'grid' as in table 2.3 and 2.4 to calculate the equivalent level of credit risk from transactions. The Bank will also have a 'look-up table' as in table 2.1. and 2.2 to calculate the level of RWA to determine capital needs. 

Adequacy of the Regulatory return on capital 

Bank business is not static and the level of RWA will change with the new contract or a contract for which the due date. 

In this situation the bank has 2 options namely: 
Determine the level of capital adequacy, while the amount of RWA that are available should fix *. However, this situation limits the ability to obtain bank new business, or 
Increasing the capital adequacy increased when RWA 

Mem-fix-a capital adequacy akan RWA difficult because of the instrument will be increased without any new business. 

Return on Regulatory capital is a measure to ensure that a transaction generate enough capital to improve bank. Please note that the cost of risk is not specifically measured except through the acquisition margin is calculated in the 'net earning'. Determining whether income is sufficient to separate the parameters.