BASEL II GUIDELINES

Basel IIFederal Reserve Board (FRB)Identity Theft
Risk Management

">U. S. Implementation of Basel II: Objectives of Basel Accord

Advance a “three- pillar ” approach

–Pillar 1 - - minimum capital requirement

–Pillar 2 - - supervisory oversight

–Pillar 3 - - heightened market discipline

Develop a measure of capital that is:

–more risk sensitive than the current approach

–better suited to the complex activities of internationally-active banks

–capable of adapting to market and product evolution

Objectives of the Revisions

•Encourage improvements in risk management and enhance internal

assessments of capital adequacy