This information should make the Bank’s actions more readily understandable not only to financial market participants but also to the general public and should provide a better basis than before for judging the performance of 4 monetary policy. 3  See Bank of Canada (1991). 4  Bank of Canada (1991), pp.
Pillar 2 requires the banks to establish an Internal Capital Adequacy Assessment Process (ICAAP) to capture all the material risks, including those that are partly covered or not covered under the other two Pillars. The ICAAP of the banks is also required to be subject to a supervisory review by the supervisors.