The European Banking Authority (EBA) has published a report which assesses the compliance of institutions’ disclosures in their 2014 annual Pillar 3 disclosure reports with the disclosure requirements in Part Eight of the Capital Requirements Regulation (CRR), which forms the EU’s implementation of the Basel Pillar 3 disclosure framework.

Overall, following an assessment of 17 European institutions, the EBA notes that there has been an increase in the quality of disclosures but compliance with new disclosure requirements still requires improvements. Specifically, disclosures on:

  • own funds and capital requirements could be further improved especially with regards to deductions due to prudential filters and the breakdown of capital requirements by exposure classes;
  • internal ratings-based (IRB) models could be enhanced for the breakdown of IRB risk parameters by exposures and by geography; and
  • the assessment of the global systemically important institutions (G-SII) status, remuneration and asset encumbrance, although more satisfactory than the rest, could be improved.

View EBA provides assessment of banks Pillar 3 reports for 2015, 27 November 2015