The purpose of market discipline in the revised adequacy framework is to complement the minimum capital requirements and the supervisory review process that the aim is to establish more transparent and more disciplined financial market so that stakeholders can assess the position of a bank regarding holding of assets and to identify the risks relating to the assets and capital adequacy.
1. It
is expected
that the
disclosure framework
does not conflict with requirement under accounting standard as set by BB
2. Under minimum capital requirement, banks will use specified approaches/methodologies for measuring the various risks they faced and the resulting capital requirements.
3. The disclosures should be subject to adequate validation, since information in the annual financial statements would generally be audited and published.