The Basel Committee on Banking Supervision (Basel Committee) has published an overview report of Pillar 2 supervisory practices and approaches. The report describes the key concepts of Pillar 2 and the different practices in use across Basel Committee member jurisdictions.
Pillar 2 of the Basel framework does not include prescriptive guidance or direction on supervisory approaches. Instead, it is principles-based and intended to be tailored to the risks, needs and circumstances of the respective jurisdictions. However, the report does not attempt to indicate whether one jurisdiction’s approach is preferable to another jurisdiction.
The report provides a broad overview of the key concepts of Pillar 2 and presents a description of the different practices in use across Basel Committee member jurisdictions. While the report covers a range of topics, it is not a comprehensive stocktake of all Pillar 2-related topics for all Basel Committee member jurisdictions. Instead, it highlights key areas of the Pillar 2 framework and provides examples and case studies of the ranges of practices.