Basel II

Basel II: International Standards/ Principals of Banking Regulation: Implemented in Bangladesh on 1^st  January , 2010  ( Car 10% or 400 crore on 1^st July 2011)

Pillar I:

Minimum Capital Requirement :

i)                    Investment/ Credit Risk ( Standardized Approach based on External assessment of Investment exposure risk weights by Rating Agency) 

ii)                Operational Risk (Risk of loss resulting from operations done on Basic Indicator Approach -15% of average gross income of last 3 years)

iii)                Market Risk: Standardised Approach, =Rate of return risk, Equity price risk, Exchange rate, commodity Price risk=(VAR)

Pillar II: Supervisory Review Process: Board and Senior Management Oversight, Sound Capital Assessment, Monitoring & reporting, Internal Control Review

Pillar III: Market Discipline: disclosure of financial exposure eg, Balance sheet, Financial Statement on quarterly basis.