Pillar 2: Difference between revisions

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''Banking - regulation.''
1.  ''Banking - supervision - regulation.''


(P2).
In banking supervision and regulation, Pillar 2 addresses firm-wide governance and risk management, among other matters.
 
Pillar 2 is the aspect of banking supervision which addresses firm-wide governance and risk management, among other matters.


Additional capital requirements may be imposed by bank supervisors under Pillar 2, depending on their evaluation of banks' internal assessments of their risks and capital requirements.
Additional capital requirements may be imposed by bank supervisors under Pillar 2, depending on their evaluation of banks' internal assessments of their risks and capital requirements.




=====UK Pillar 2 supervisory reviews=====
2.  ''Tax - profit shifting - Global Minimum Tax - Organisation for Economic Co-operation and Development (OECD).''
The UK supervisor is the Prudential Regulatory Authority (PRA).


There are two main areas that the PRA considers when conducting a Pillar 2 review:
In international taxation, Pillar 2 of the OECD's tax reforms agreed in 2021 provides detailed rules to implement a global minimum tax rate of 15% on large multinational enterprises.


(i) Risks to the firm which are either not captured, or not fully captured, under Pillar 1 capital requirements, referred to as Pillar 2A; and


(ii) Risks to which the firm may become exposed over a forward-looking planning horizon - e.g. due to external stresses - referred to as Pillar 2B.
== See also ==


=====IRRBB=====
Most regulators treat Interest Rate Risk in the Banking Book (IRRBB) as a Pillar 2 risk.
== See also ==
* [[Bank supervision]]
* [[Bank supervision]]
* [[Base erosion and profit shifting]]  (BEPS)
* [[Basel III]]
* [[Basel III]]
* [[Capital adequacy]]
* [[Capital adequacy]]
* [[Interest Rate Risk in the Banking Book]]
* [[Corporation Tax]]
* [[Effective tax rate]]  (ETR)
* [[Global Anti-Base Erosion Rules]]  (GloBE)
* [[Income Inclusion Rule]]  (IIR)
* [[Internal Capital Adequacy Assessment Process]]
* [[Multinational corporation/company]]
* [[Nexus rule]]
* [[Organisation for Economic Co-operation and Development]] (OECD)
* [[Parent company]]
* [[Pillar 1]]
* [[Pillar 1]]
* [[Pillar 2 - banking supervision]]
* [[Pillar 2 - global tax rules]]
* [[Pillar 3]]
* [[Pillar 3]]
* [[PRA buffer]]
* [[Profit shifting]]
* [[Prudential Regulation Authority]]
* [[Prudential Regulation Authority]]  (PRA)
* [[SREP]]
* [[Regime]]
* [[Risk management]]
* [[Sister company]]
* [[Stress]]
* [[Stress]]
* [[Subject To Tax Rule]]  (STTR)
* [[Supervisory Review and Evaluation Process]]  (SERP)
* [[Tax ]]
* [[Tax avoidance]]
* [[Tax compliance]]
* [[Tax evasion]]
* [[Tax haven]]
* [[Tax rate]]
* [[Top-up Tax]]
* [[Transfer pricing]]
* [[Undertaxed Payments Rule]]  (UTPR)
==External links==
*[https://www.oecd.org/tax/beps/tax-challenges-arising-from-the-digitalisation-of-the-economy-global-anti-base-erosion-model-rules-pillar-two.htm OECD - Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (Pillar Two) - Commentary]
*[https://www.oecd.org/tax/beps/pillar-two-model-rules-in-a-nutshell.pdf Pillar Two rules in a nutshell - OECD]
[[Category:Accounting,_tax_and_regulation]]

Latest revision as of 22:08, 13 September 2024

1. Banking - supervision - regulation.

In banking supervision and regulation, Pillar 2 addresses firm-wide governance and risk management, among other matters.

Additional capital requirements may be imposed by bank supervisors under Pillar 2, depending on their evaluation of banks' internal assessments of their risks and capital requirements.


2. Tax - profit shifting - Global Minimum Tax - Organisation for Economic Co-operation and Development (OECD).

In international taxation, Pillar 2 of the OECD's tax reforms agreed in 2021 provides detailed rules to implement a global minimum tax rate of 15% on large multinational enterprises.


See also


External links