Capital requirements will be tighter both in terms of the quality and level of Capital, risk coverage and leverage
Pillar 1:
- Increases focus on common equity and attempts to improves loss absorption capacity by imposing capital conservation buffers
- Strengthens risk coverage for certain complex secularizations and derivative activities, introduces a stressed risk framework, incents use of central counterparties
- Adds a non risk based leverage ratio
Pillar 2: Supplements requirements of Risk Management and Supervision
Pillar 3: Revises disclosure requirements
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