Basel II: Implementation in the Isle of Man

Pillar 2

The Tri-Party Group paper published in June 2007 "High level principles on Pillar 2 and revision of supervisory returns" elaborates on the processes that need to be in place to meet the Pillar 2 requirements of Basel II. In summary, for banks to be in a position to implement Basel II it is expected that they should have drafted an ICAAP. During 2008, the Commission will review each ICAAP submission and discuss its findings with the bank, which include capital requirements and formal notification of the bank's minimum risk asset ratio. The paper gives an example high level ICAAP format that may be used.

The Commission issued a paper in July 2007 "Basel II - Pillar 2 - The Supervisory Review and Evaluation Process, and Internal Capital Adequacy Assessment Process" which expanded and supplemented the information contained in the Tri-Party paper referred to above.

Commission papers

Basel II - Pillar 2 - The Supervisory Review and Evaluation Process, and Internal Capital Adequacy Assessment Process

Tri-Party Group papers

High level principles on Pillar 2 and revision of supervisory returns

Guidance Notes