Pillar 2 requires banks to develop an Internal Capital Adequacy Assessment Process (ICAAP) that set capital targets that are commensurate with the banks’ risk profile and control environment. Pillar 3, Market Discipline, complements the minimum capital requirement and the supervisory review process. It aims at encouraging banks to disclose to market participants essential information. In other words banks are also monitored by the markets.
State of readiness of our banks The presentations organized by the Bank of Mauritius turned out to be very fruitful exercise. I wish to thank the banks for their participation in this exercise. I have to mention here my regrets for not being able to attend the presentations made by the banks during the last two weeks.