Chap 23- Supervisory Review
·
Pillar I: Minimum Capital Requirements - which prescribes a risk-sensitive calculation of capital
requirements that, for the first time, explicitly includes operational risk in
addition to market and credit risk.
·
Pillar 2: Supervisory Review Process (SRP) - which envisages the establishment of suitable risk management
systems in banks and their review by the supervisory authority.
·
Pillar 3: Market Discipline -
which seeks to achieve increased transparency through expanded disclosure requirements
for banks.
