Large Bank Examination Workshop February 2026

Total Capital Charge

RWA = Risk Weighted Assets RWA = RWA (Market Risk) + RWA (Credit Risk) + RWA (Operational Risk) Capitalization Requirements  Tier 1 Capital > 4% of RWA  (Tier 1 + Tier 2) Capital > 8% of RWA

15

Knowledge Check Which of the following describes Pillar 3 of Basel II? a) Supervisory review process b) Market discipline c) Minimum capital requirements

16

8

© Global Financial Markets Institute Inc.