The European Banking Authority (EBA) has issued a consultation on draft guidelines on regulatory disclosure requirements following an update of the Pillar 3 requirements by the Basel Committee on Banking Supervision in January 2015.
The revised Pillar 3 framework, which applies as of 31 December 2016, provides for common format and harmonised frequencies for the disclosure of existing requirements as well as adds certain new requirements.
The incorporation of the revised Pillar 3 into the Capital Requirements Regulation (CRR) would require an update of the disclosure requirements laid down in the CRR which will only take place as part of a comprehensive review process of the Regulation. In the meantime, EU banks will face market pressure to provide disclosures in line with the revised Pillar 3 when it becomes applicable.
The aim of these draft guidelines is, therefore, to provide guidance to institutions to enable them to comply with the CRR provisions while implementing the revised Basel Pillar 3 requirements. The draft guidelines apply to globally and other systemically important institutions (G-SII and O-SII) and do not waive the requirements for these and other institutions to comply with the other CRR disclosure requirements for which the draft guidelines offer no guidance.
The guidelines when finalised will apply for the year-end 2017 disclosures. However, G-SIIs are recommended to implement a limited subset of disclosures relating to risk-weighted assets and capital requirements as soon as year-end 2016 so as to provide users with information suitable for comparison with international peers.
The deadline for comments to the consultation paper is 29 September 2016. A public hearing will be hold on 6 September 2016.