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Consolidated Supervision - World Bank

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<strong>Consolidated</strong> <strong>Supervision</strong><br />

Building-Block Approach<br />

▼<br />

▼<br />

▼<br />

▼<br />

Uses consolidated financial statements<br />

Divides statement into individual sectors or<br />

"blocks"<br />

Adds together solo capital/proxy requirements<br />

of each member<br />

Compares aggregate capital/proxy requirement<br />

to consolidated capital<br />

Basel Committee on <strong>Bank</strong>ing <strong>Supervision</strong><br />

31

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