White Papers for Basel II Capital Accord (Basel II)

BASEL II PILLAR 3 APS 330: CAPITAL ADEQUACY & RISK MANAGEMENT IN ANZ

ANZ

This document has been prepared in accordance with the Australian Prudential Regulation Authority (APRA)
Australian Prudential Standard (APS) APS 330 Capital Adequacy: Public Disclosure of Prudential Information
(APS 330). APS 330 mandates the release to the investment community and general public of information relating to
ANZ’s capital adequacy and risk measurement practices. APS 330 has been established to implement Pillar 3
of the international framework for bank capital adequacy, known as ‘Basel II’ 1.
In simple terms, Basel II consists of three mutually reinforcing ‘pillars’:
• Pillar 1 covers the rules for calculating the minimum capital required for a bank’s credit, operational and
market risk. There is a range of approaches that may be adopted by banks, ranging from simple to
more sophisticated risk measurement and management approaches.
• Pillar 2 covers a review of the adequacy of the Pillar 1 capital, taking into account all the rest of the risks
a bank faces, as well as current economic conditions, future growth plans and likely stress scenarios.
• Pillar 3 seeks to harness the power of market discipline to supplement regulatory supervision of banks.
To achieve this, an informed market is required – hence the disclosure of the information contained in
this document. The information to be disclosed is tied to the risk measurement and management
approaches approved under Pillar 1.

View the White Paper

Share or bookmarklet this web page at: