Large Bank Examination Workshop February 2026

Structure of Basel II

Pillar 1

Pillar 2

Pillar 3

Supervisory Review Process Process

Market Discipline

Minimum Capital Requirements

Definition of Capital

Weighted Assets

Market Risk

Credit Risk

Operational Risk

Standardized Approach

Standardized Approach

IRB Approach

Basic Indicator Approach

Advanced Measurement Approach (AMA)

Foundation Approach

Advanced Approach

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Overview of Basel II Approaches

Basic Indicator Approach

Score Card

Operational Risk Capital

Standardized Approach

Loss Distribution

Advanced Measurement Approach (AMA)

Internal Modeling

Standardized Approach

Total Regulatory Capital

Credit Risk Capital

Foundation

Internal Ratings Based (IRB)

Advanced

Standard Model

Market Risk Capital

Internal Model

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