Cryptocurrency Q&A
What is pillar 2 capital?
What is pillar 2 capital?
CryptoProphet
Wed Nov 06 2024
|
7 answers
1909
I'm trying to understand pillar 2 capital. I've heard this term in the context of banking and financial regulations, but I'm not sure exactly what it means or how it functions within the financial system.
7 answers
DongdaemunTrendsetting
Fri Nov 08 2024
The Pillar 2 requirement serves as an additional layer of capital adequacy for banks.
Was this helpful?
213
47
Lorenzo
Fri Nov 08 2024
This requirement is specific to each financial institution and is implemented alongside the minimum capital requirement.
Was this helpful?
339
97
Chloe_thompson_artist
Fri Nov 08 2024
Known as Pillar 1, the minimum capital requirement sets a baseline for banks to maintain financial stability.
Was this helpful?
336
91
Martina
Thu Nov 07 2024
However, there are instances where Pillar 1 may underestimate or fail to cover certain risks faced by banks.
Was this helpful?
242
61
Moonshadow
Thu Nov 07 2024
To address these gaps, the Pillar 2 requirement is introduced to ensure a more comprehensive assessment of risks.
Was this helpful?
217
83
Load 5 more related questions
