Pillar 2 of the Basel framework is the:
ASectoral revision
BSystemic reserve
CSupervisory review
DStatutory reserve
Answer & Solution
Correct answer: C. Supervisory review
1. Pillar 1 fixes the number and Pillar 3 the disclosure.
2. The middle pillar is the regulator's own assessment.
3. It is the Supervisory Review and Evaluation Process.
_Source: Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025_
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