3 Pillars of Basel accords
Friday, January 17, 2014
0 Comments
ChartAcc.com - Three pillars of Basel are as follows:
Pillar 1 - Minimum Capital Requirement :
Pillar 2 - Supervisory review Process :
Pillar 3 - Market Discipline :
Pillar 1 - Minimum Capital Requirement :
- for total risk including the credit risk, market risk as well as Operational Risk
Pillar 2 - Supervisory review Process :
- Evaluate the activities and risk profiles of individual banks
- to determine whether those organisations should hold higher levels of capital than required as per Pillar 1 and
- to see whether there is any need for remedial actions.
Pillar 3 - Market Discipline :
- to motivate prudent management
- by enhancing the degree of transparency
- in banks’ public reporting
- to shareholders and customers.
For more on Basel click here.
Subscribe to:
Post Comments (Atom)
 |
| CHARTACC Share space for Chartered Accountants and Financial Professionals |