The aim of Basel II is to promote safety and soundness in the financial system. It is structured around three “pillars”: Pillar 1 on minimum capital requirements; Pillar 2 on the supervisory process; and Pillar 3 on market discipline.
Pillar 3 aims to encourage market discipline by developing a set of disclosure requirements which will allow market participants to assess key pieces of information on a firm’s capital, risk exposures and risk assessment process. The disclosures contained in the Close Brothers Limited document below cover the qualitative and quantitative disclosure requirements of Pillar 3.
