3 Pillars of Basel accords

Friday, January 17, 2014

ChartAcc.com - Three pillars of Basel are as follows:

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.

ChartAcc Sharespace for Chartered Accountats by Vikrmn CA Vikam Verma

Stay connected to ChartAcc, a professional ShareSpace.
Visit http://www.ChartAcc.com
Posted by Vikrmn: Author of "10 Alone" (CA Vikram Verma) 10Alone.com


ChartAcc Logo by Vikrmn CA Vikram Verma Vikrmn.com
Share space for Chartered Accountants
and Financial Professionals