Physical control and Pillar 2: Difference between pages
imported>Doug Williamson (Created page with "A physical control is an example of an internal control.<br /> Physical controls are mechanisms for protecting documents and technology from unauthorised physical access.<br /...") |
imported>Doug Williamson (Expand.) |
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''Banking - regulation.'' | |||
(P2). | |||
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. | |||
=====UK Pillar 2 supervisory reviews===== | |||
The UK supervisor is the Prudential Regulatory Authority (PRA). | |||
There are two main areas that the PRA considers when conducting a Pillar 2 review: | |||
(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. | |||
The assessment will generally include an Internal Capital Adequacy Assessment Process (ICAAP) and Supervisory Review and Evaluation Process (SREP). | |||
=====IRRBB===== | |||
Most regulators worldwide treat Interest Rate Risk in the Banking Book (IRRBB) as a Pillar 2 risk. | |||
== See also == | == See also == | ||
[[ | * [[Bank supervision]] | ||
[[Internal | * [[Basel III]] | ||
[[ | * [[Capital adequacy]] | ||
* [[Interest Rate Risk in the Banking Book]] | |||
* [[Internal Capital Adequacy Assessment Process]] | |||
* [[Pillar 1]] | |||
* [[Pillar 3]] | |||
* [[PRA buffer]] | |||
* [[Prudential Regulation Authority]] | |||
* [[Supervisory Review and Evaluation Process]] | |||
* [[Stress]] | |||
Revision as of 18:07, 12 November 2016
Banking - regulation.
(P2).
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.
UK Pillar 2 supervisory reviews
The UK supervisor is the Prudential Regulatory Authority (PRA).
There are two main areas that the PRA considers when conducting a Pillar 2 review:
(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.
The assessment will generally include an Internal Capital Adequacy Assessment Process (ICAAP) and Supervisory Review and Evaluation Process (SREP).
IRRBB
Most regulators worldwide treat Interest Rate Risk in the Banking Book (IRRBB) as a Pillar 2 risk.
