Takes you through every main strand of "Pillar II" and looks at the importance of the subject and its main consequences for bank management. "Pillar II" complements the black letter requirements of "Pillar I" and is intended to achieve two objectives: to ensure that banks have adequate capital to support all the risks in their business and to encourage them to use better techniques for monitoring and managing their risks. The second pillar specifically emphasises the need for a qualitative approach to supervising banks. It constitutes an integral part of the new capital accord and ranks equally alongside the minimum capital requirements and the call for market transparency. "Pillar II in the New Basel Accord", "The Challenge of Economic Capital" takes you through every main strand of "Pillar II". It tackles the regulatory framework, shows how to reconcile the various regulatory sources and focuses on the following sequence of questions: What additional capital is...