{"id":106705,"date":"2021-02-08T16:32:05","date_gmt":"2021-02-08T11:02:05","guid":{"rendered":"https:\/\/www.vskills.in\/certification\/tutorial\/?page_id=106705"},"modified":"2024-04-12T14:29:12","modified_gmt":"2024-04-12T08:59:12","slug":"the-second-pillar-supervisory-review-process","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/the-second-pillar-supervisory-review-process\/","title":{"rendered":"The Second Pillar-Supervisory Review Process"},"content":{"rendered":"\n<p>This process dictates that supervisors evaluate a bank\u2019s assessment of its own risks and determine whether that assessment seems reasonable. It is not enough for a bank or its supervisors to rely on the calculation of minimum capital under the first pillar. Supervisors should provide an extra set of analysts to verify that the bank understands its risk profile and is sufficiently capitalized against its risks.<\/p>\n\n\n\n<p>The second pillar is based on four key principals:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Banks\u2019 own assessment of capital adequacy<\/li><li>Supervisor\u2019s review of banks\u2019 capital adequacy<\/li><li>Capital above regulatory minimums<\/li><li>Supervisory intention.<\/li><\/ul>\n\n\n\n<p>This pillar encourages banks to better use risk management techniques and have adequate capital to support all risks. The focus here is completely internal and not regulatory or capital.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" src=\"http:\/\/www.vskills.in\/lms\/wp-content\/uploads\/2016\/05\/Image-58-3.jpg\" alt=\"Image 58\" class=\"wp-image-17880\"\/><\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"<p>This process dictates that supervisors evaluate a bank\u2019s assessment of its own risks and determine whether that assessment seems reasonable. It is not enough for a bank or its supervisors to rely on the calculation of minimum capital under the first pillar. Supervisors should provide an extra set of analysts to verify that the bank&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-106705","page","type-page","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Second Pillar-Supervisory Review Process - Tutorial<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/the-second-pillar-supervisory-review-process\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Second Pillar-Supervisory Review Process - Tutorial\" \/>\n<meta property=\"og:description\" content=\"This process dictates that supervisors evaluate a bank\u2019s assessment of its own risks and determine whether that assessment seems reasonable. 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