Requirement (Basel II)
Sound capital assessment
Requirements - Basel II
Description
Description
731. Fundamental elements of sound capital assessment include:
• Policies and procedures designed to ensure that the bank identifies, measures, and reports all material risks;
• A process that relates capital to the level of risk;
• A process that states capital adequacy goals with respect to risk, taking account of the bank’s strategic focus and business plan; and
• A process of internal contr