Title[ Part 3: The Second Pillar - Supervisory Review Process
Section[ Principle 2: 3. Assessment of the control environment
751. Supervisors should consider the quality of the bank’s management information reporting and systems, the manner in which business risks and activities are aggregated, and management’s record in responding to emerging or changing risks.
752. In all instances, the capital level at an individual bank should be determined according to the bank’s risk profile and adequacy of its risk management process and internal controls. External factors such as business cycle effects and the macroeconomic environment should also be considered.
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