Case of NBR

I. General considerations (1)
• The Pillar 2 supervisory review process is an integral part of the Basel Framework and
consequently of the EU regulations.
• A fundamental objective of the Basel Committee's work, when Basel II framework was
introduced in 2004, was to reinforce the minimum capital requirements of the first pillar
with a robust implementation of the second pillar. This included efforts by banks to
assess their capital adequacy and by supervisors to review such assessments.
• SREP it is intended to ensure that banks not only have adequate capital to support all the
risks in their business but also develop and use better risk management techniques in
monitoring and managing these risks.
Source BIS
3