That is why the Basle Accord rests on three well-known pillars which stand side by side with equal status: •  The first pillar relates to the minimum capital requirements needed for covering credit risk, market risk and other risks. •  The second pillar, known as the “supervisory review process”, comprises an enhanced qualitative examination of the individual risk profile of a bank.
•  As the third pillar, supervision is to be supplemented by greater market transparency. All three pillars serve in a sense (to remain in the same picture) to carry the roof, meaning to contribute to the stability of the global financial system, also in the future.