Basel II
ØTo promote adoption of strong risk management system by banks – June 26, 2004.
ØThree mutually reinforcing pillars:
ØPillar 1 -
Minimum capital requirements each bank must hold to cover its exposure
to credit, market and operational risk.
ØPillar 2 - Supervisory review of capital adequacy
that aim to ensure that a bank's capital level is sufficient to cover its
overall risk.
ØPillar 3 - Market discipline and details minimum levels of public disclosure.
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