Phillips curve and Pillar 2: Difference between pages
imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Classify page.) |
||
| Line 1: | Line 1: | ||
''Banking - regulation.'' | |||
(P2). | |||
Pillar 2 is the aspect of banking supervision which addresses firm-wide governance and risk management, among other matters. | |||
2. | 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 at all, or not adequately 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]] | ||
* [[ | * [[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]] | |||
* [[Stress]] | |||
* [[Supervisory Review and Evaluation Process]] | |||
[[Category: | [[Category:Accounting,_tax_and_regulation]] | ||
Revision as of 18:51, 29 June 2022
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 at all, or not adequately 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.
