Multiple choice

Which one is not the part of, Migration to new capital adequacy framework based on the three pillar approach, namely:

  1. Minimum capital requirements

  2. Supervisory review

  3. Market Discipline

  4. Book keeping

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Basel II and Basel III frameworks are built on three pillars: Pillar 1 covers minimum capital requirements, Pillar 2 covers supervisory review processes, and Pillar 3 covers market discipline through disclosure requirements. Book keeping is a basic accounting function, not a pillar of the capital adequacy framework.