A stable, well-functioning financial market for allA stable, well-functioning financial market for allFI's methods for assessing individual types of risk within Pillar 2
This memorandum describes FI's methods for assessing the capital adequacy requirement within the framework of Pillar 2 for three different types of risk.
The three types:
- credit-related concentration risk
- interest rate risk in the banking book
- pension risk.
Pillar 2 is the umbrella term for the rules governing firms' internal capital adequacy assessment process, and FI's supervisory review and evaluation process, of which FI's supervisory capital assessment forms a key component.
