caiib super notes: bank financial management: module d: balance sheet management: pillar 3 –...
TRANSCRIPT
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Pillar 3 – Market Discipline
Module D: Balance Sheet Management
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
CAIIB – SUPER NOTES
Bank Financial Management: Pillar 3 – Market Discipline
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Contents
Coverage:
1. Introduction
2. Pillar 3 – Market Discipline
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
INTRODUCTION
1.
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Introduction
• Provides Disclosure Requirements
• Will allow market participants to assess key information and
thereby make ‘informed’ decision about a bank
• Should be consistent with how senior management and the
Board of Directors assess and manage the risks of the bank
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
PILLAR 3 – MARKET DISCIPLINE
2.
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Scope and Frequency
• As at end-March every year
• Annual reports as well as websites
• Interim disclosures for banks with Capital Funds of Rs. 100 Crores or more
– Quantitative Aspects
– Half Yearly, as at end-September
• Interim disclosures for banks with Capital Funds of Rs. 500 Crores or more
– Including their subsidiaries
– Total Capital, Total Required Capital, Tier 1 Ratio and Total Capital Adequacy Ratio
– Quarterly Basis
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Validation, Materiality etc.
• Disclosures should be subjected to adequate validation
• Disclosures should comply with the materiality concept
(relevant)
• General Disclosure Principle:
– Formal disclosure policy approved by the Board of Directors
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Prescribed Disclosures under Pillar 3
Scope of Application Scope of Application Capital Structure Capital Structure Capital Adequacy Capital Adequacy Credit Risk- General
Disclosures Credit Risk- General
Disclosures
Credit Risk- Disclosures for Portfolios under
standardised approach
Credit Risk- Disclosures for Portfolios under
standardised approach
Credit Risk- Disclosures for Portfolios under IRB
approach
Credit Risk- Disclosures for Portfolios under IRB
approach
Credit Risk Mitigation- Disclosures for
standardised and IRB approaches
Credit Risk Mitigation- Disclosures for
standardised and IRB approaches
Securitisation- Disclosures for
standardised and IRB approaches
Securitisation- Disclosures for
standardised and IRB approaches
Market Risk: Disclosures under
Standardised Approach
Market Risk: Disclosures under
Standardised Approach
Market Risk: Disclosures under Internal Models
Approach
Market Risk: Disclosures under Internal Models
Approach
Operational Risk Operational Risk Equities- Disclosures
for banking book positions
Equities- Disclosures for banking book
positions
Internal Rate Risk in the banking book
Internal Rate Risk in the banking book
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
Disclosures as prescribed by RBI
• Link to the RBI Circular in this
respect is given below – refer
to Tables DF 1 to DF 10 (Page
92 to 98)
(Click here to go to RBI site)
CAIIB – Super-Notes © M S Ahluwalia Sirf Business
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M S Ahluwalia, amongst other things, is a visual artist, blogger,
blog designer and of course an MBA and Banker from New
Delhi, India.
To know more about him you may visit his blog-site: Estudiante De La Vida