Basel II - The 3 Pillars

3 Pillars of Basel II


Basel II consists of three pillars:


Minimum capital requirements for credit risk, market risk and operational risk—expanding the 1988 Accord (Pillar I)

Supervisory review of an institution’s capital adequacy and internal assessment process (Pillar II)

Effective use of market discipline as a lever to strengthen disclosure and encourage safe and sound banking practices (Pillar III)


 

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