The Basel Committee on Banking Supervision (BCBS) has issued a consultation document on a review of Pillar 3 disclosure requirements.
The consultation document sets out the findings of the first phase of a review by the BCBS, which include proposals for revisions to the existing disclosure requirements. The related press release confirms that in most cases the revisions do not require banks to disclose additional information, but rather to present the requirements in a more detailed and prescriptive way. To improve comparability and consistency, the review proposes a “hierarchy” of disclosures and greater use of templates.
Prescriptive templates are proposed for quantitative information considered essential for the analysis of a bank’s regulatory capital requirements. Templates with a more flexible format are proposed for information considered meaningful to the market but not central to the analysis of a bank’s regulatory capital adequacy. All of the templates will provide senior management with the scope to provide qualitative commentary to reflect a bank’s particular circumstances and risk profile.
The deadline for responses to the consultation document is 26 September 2014. The BCBS seeks comments, in particular, from investors, analysts, rating agencies, other market users of the Pillar 3 data, and from the auditing community.
View Consultative Document: Standards – Review of the Pillar 3, 24 June 2014
View Review of the Pillar 3 disclosure requirements – consultative document, 25 June 2014