Introduction

Basel II is an international accord on capital requirements that applies to banking institutions in various countries including Canada, United States of America and the United Kingdom (UK). It is intended to strengthen the measurement and monitoring of financial institutions’ capital by adopting a more risk sensitive approach to capital management. The EU implemented the Basel II framework through the Capital Requirements Directive (CRD) which has been adopted by UK Financial Services Authority (FSA).

The Basel II framework is comprised of three complementary pillars:

Pillar 1 establishes rules for the calculation of minimum capital for Credit, Market and Operational Risk (capital adequacy requirements).

Pillar 2 is an internal discipline to evaluate the adequacy of the regulatory capital requirement under Pillar 1 and other non Pillar 1 risks. This pillar requires the FSA to undertake a supervisory review to assess the robustness of the regulated entity's internal assessment. (supervisory review).

Pillar 3 complements the other pillars and effects market discipline through public disclosure. Expanded disclosure about capital and risk enables interested parties to better understand the risk profile of individual banks and companies and to make comparisons (market discipline).

Pillar 3 Disclosures

RBC Finance BV group (BV group) is the UK consolidated group regulated by the FSA.

The material entities consolidated within the BV group are RBC Europe Limited and the Royal Bank of Canada Channel Islands Limited (RBCCIL - Guernsey regulated bank). These disclosures are published on our website as a condition of the FSA Pillar 3 disclosure waiver granted to the BV group and RBCEL and in accordance with the requirements of the FSA Prudential Sourcebook for Banks, Building Societies and Investment Firms, BIPRU 11 (Pillar 3) and include additional disclosures on the remuneration of staff whose professional actvities have a material impact on the risk profile of the BV group and RBCEL.

The Capital Adequacy Reports (FSA003) and the Credit Risk disclosures detail the composition and amount of Capital Resources (CR) and also provide the analysis of the credit, market and operational risk, Capital Resources Requirements (CRR).

The BV Group and RBCEL implemented the Basel II Standardised Approach for calculating credit and market risk and the Basic Indicator Approach for operational risk on 1st January 2008.

RBCEL

• October 2011
• July 2011
• April 2011
• January 2011
• October 2010
• July 2010
• April 2010
• January 2010
• October 2009
• July 2009
• April 2009
• January 2009

RBCBV

• Remuneration 2011
• October 2011
• Additional disclosures on credit risk exposures October 2011
• Remuneration 2010
• April 2011
• October 2010
• April 2010
• October 2009
• April 2009