3 pillars of Basel-II

Pillar-I: Minimum Capital Requirements
i) Capital for Credit Risk
 a) Standardized Approach (upto 2012)
 b) Internal Rating Based Approach( from 2013)
2 Rating Agencies are CRISL and CRAB
(BRPD circular-05 29/04/2009)


ii) Capital for Market Risk:
 a) Standardize Method
  1. Maturity Method-BB
  2. Duration Method
 b) Internal Model Method

iii)  Capital for Operational Risk
a) Basic Indicator Approach
b) Standardized Approach
c) Advanced Measurement Approach

Pillar-II: Supervisory Review
i) Evaluate risk assessment
ii) Ensure soundness and integrity of Bank's internal process to assess the adequacy of capital.
iii)  Ensure maintanence of minimum capital
iv) Prescribe differtial capital where necessary. ie. where the internal process are slack.

Pillar-III: Market Discipline/Disclosure Requirements
i) Enhance disclosure
ii) Core disclosure and supplementary disclosure
iii) Timely at least semi annual disclosure.