Answer:
The statement is true
Step-by-step explanation:
What are the three pillars of Basel II?
The three pillars of Basel II are capital, supervisory review process, and market discipline.
- The capital pillar means that banks must keep enough capital to cover their risks. They can use different methods to measure their risks.
- The supervisory review pillar means banks must assess their own capital and risk management, and supervisors must check and approve them.
- The market dicipline pillar means that banks must disclose their financial and risk information to the public. This helps market participants and encourages good practices .