Transcription of Basel Committee on Banking Supervision …
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Basel Committeeon Banking SupervisionConsultative DocumentPillar 2 (SupervisoryReview Process)Supporting Documentto the New Basel Capital AccordIssued for comment by 31 May 2001 January 2001 Superseded documentTable of contentsINTRODUCTION .. 1 PRINCIPLE 1: BANKS SHOULD HAVE A PROCESS FOR ASSESSING THEIR OVERALLCAPITAL ADEQUACY IN RELATION TO THEIR RISK PROFILE AND ASTRATEGY FOR MAINTAINING THEIR CAPITAL LEVELS.. 3(I)BOARD AND SENIOR MANAGEMENT 4(II)ELEMENTS OF A SOUND CAPITAL ASSESSMENT 5(III)RISKS TO BE 5 Credit risk .. 6 Market risk .. 6 Interest rate risk in the Banking book .. 6 Liquidity Risk .. 7 Other risk .. 7(IV)MONITORING AND 7(V)INTERNAL CONTROL 7 PRINCIPLE 2: SUPERVISORS SHOULD REVIEW AND EVALUATE BANKS INTERNAL CAPITALADEQUACY ASSESSMENTS AND STRATEGIES, AS WELL AS THEIR ABILITYTO MONITOR AND ENSURE THEIR COMPLIANCE WITH REGULATORYCAPITAL RATIOS.
Basel Committee on Banking Supervision Consultative Document Pillar 2 (Supervisory Review Process) Supporting Document to the New Basel Capital Accord
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