Large Bank Examination Workshop February 2026

Basel II Upgrade

• Pillar 2 Guidance  Firm wide governance and risk management  Capturing risk of off-balance sheet exposures and securitization activities  Managing risk concentrations  Managing reputational risk and liquidity risk  Improving valuation practice, and  Implementing sound stress testing practices

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Basel II Upgrade

• Pillar 3  Appropriate additional disclosures

completing enhancements in Pillars 1 and 2  Securitization exposures in trading book  Sponsorship of off-balance sheet vehicles  Re-securitization exposures; and  Pipeline and warehousing risks with regard to securitization exposures

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