Pillar II
From Open Risk Manual
Definition
The Pillar II supervisory review process (SREP) is an integral part of the Basel Framework. It is intended to ensure that regulated financial instituions not only have adequate Regulatory Capital to support all the risks in their business but also develop and use better Risk Management techniques in monitoring and managing these risks. [1]
Implementation
By construction, Pillar II is intended to be flexible and to accommodate each jurisdiction’s specific supervisory approach.
References
- ↑ Basel Committee on Banking Supervision, "Overview of Pillar 2 supervisory review practices and approaches", June 2019
