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Introduction
Basel II is an international accord on capital requirements
that applies to banking institutions in various countries
including Canada, United States of America and the United
Kingdom (UK). It is intended to strengthen the measurement
and monitoring of financial institutions’ capital by
adopting a more risk sensitive approach to capital management.
The EU implemented the Basel II framework through the Capital
Requirements Directive (CRD) which has been adopted by UK
Financial Services Authority (FSA).
The Basel II framework is comprised of three complementary
pillars:
Pillar 1 establishes rules for the calculation of minimum
capital for Credit, Market and Operational Risk (capital adequacy
requirements).
Pillar 2 is an internal discipline to evaluate the adequacy
of the regulatory capital requirement under Pillar 1 and other
non Pillar 1 risks. This pillar requires the FSA to undertake
a supervisory review to assess the robustness of the regulated
entity's internal assessment. (supervisory review).
Pillar 3 complements the other pillars and effects market
discipline through public disclosure. Expanded disclosure
about capital and risk enables interested parties to better
understand the risk profile of individual banks and companies
and to make comparisons (market discipline).
Pillar 3 Disclosures
RBC Finance BV group (BV group) is the UK consolidated group
regulated by the FSA.
The material entities consolidated within the BV group are
Royal Bank of Canada Europe Limited (RBCEL-UK regulated bank)
and the Royal Bank of Canada Channel Islands Limited (RBCCIL
- Guernsey regulated bank). These disclosures are published
on our website as a condition of the FSA Pillar 3 disclosure
waiver granted to the BV group and RBCEL and in accordance
with the requirements of the FSA Prudential Sourcebook for
Banks, Building Societies and Investment Firms, BIPRU 11 (Pillar
3).
The Capital Adequacy Reports (FSA003) detail the composition
and amount of Capital Resources (CR) and also provide the
analysis of the credit, market and operational risk, Capital
Resources Requirements (CRR).
For the BV group and RBCEL, the FSA003 Capital Adequacy reports
will be made available on the RBC Group website on a half
yearly and quarterly basis respectively.
The BV Group and RBCEL implemented the Basel II Standardised
Approach for calculating credit and market risk and the Basic
Indicator Approach for operational risk on 1st January 2008.
The Pillar 3 Limited Disclosures Policy has been reviewed
and is annually approved by the RBCEL Board of Directors.
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RBCEL |
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April
2010 (pdf, 3 pages, 68Kb) |
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January
2010 (pdf, 3 pages, 68Kb) |
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October
2009 (pdf, 3 pages, 40Kb) |
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July
2009 (pdf, 3 pages, 32Kb) |
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April
2009 (pdf, 3 pages, 32Kb) |
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January
2009 (pdf, 3 pages, 32Kb) |
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RBCBV |
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October
2009 (pdf, 3 pages, 69Kb) |
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April
2009 (pdf, 3 pages, 32Kb) |
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