Further to the recent series of papers on Basel II issues a briefing paper on Pillar 2 is available here. You may recall I said earlier in the year that I would produce such a paper to help bankers better understand the background to Pillar 2, what risks it covers not already captured by Pillar 1 and how we expect it to impact on local subsidiary banks. There is still not a great deal in the public domain about Pillar 2 but I think it is important that local bankers should start focusing on Pillar 2 issues and to that end we have suggested preparations you should undertake in the near future.
The document has been sent to all banks incorporated in Guernsey and to the Chairman of the Association of Guernsey Banks. It is also posted on the “Basel II” area on this website.
P J MARR
Director of Banking