The correct option is C Three
The Basel Committee on Banking Supervision (BCBS) is a committee of banking supervisory authorities that was established by the Central Bank's governors of a group of 10 countries in 1985. It consists of senior representatives of bank supervisory authorities and central banks from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands. Spain, Sweden, Switzerland the United Kingdom and the United State of America. It usually meets at the Bank of International Settlements in Basel, where its permanent secretariat is located.
Three Pillars of Basel II: The Basel Committee's revised framework is based on the following three pillars:
(i) The First Pillar: Minimum Capital Requirements
(a) Calculation of minimum capital requirements and constituents of capital
(b) Credit Risk
- Standardised Approach
- Internal Ratings-based Approach
- Securitisation Framework
(c) Operation Risk
(d) Market Risk
(ii) The Second Pillar: Supervisory Review Process
(iii) The Third Pillar: Market Discipline