The Financial Stability Board (FSB) has published:

  • a third progress report on the implementation of the Enhanced Disclosure Task Force (EDTF) Principles and Recommendations (the Recommendations), contained in its October 2012 report Enhancing the Risk Disclosures of Banks (the October Report). The progress report consists of two parts: (i) a survey of global systemically-important banks and certain domestic systemically-important banks; and (ii) a review by a group of the investor members of selected EDTF disclosures. The progress reports notes that based on the results from bank self-assessments, 82% of firms say they have fully implemented the Recommendations, up from 75% the year before;
  • an EDTF report on the impact of expected credit loss approaches on bank risk disclosures, which considers the changes banks will need to make to their financial disclosures with the implementation of a new expected credit loss accounting standard. The EDTF report notes that for many banks significant changes to systems and processes may be required, which will require substantial time and resources to deliver; and
  • an EDTF statement on its position on the disclosure of emergency liquidity assistance. The objective of Recommendation 19 and Figure 5 is to differentiate assets which were used to support funding for collateral needs at the balance sheet date from those that were available for potential funding and collateral needs. However, the EDTF has previously acknowledged that certain regulators are concerned that such disclosure has the potential to reveal the use or non-use of emergency liquidity assistance provided by central banks on a confidential basis. The EDTF states that it now accepts that Recommendation 19 and Figure 5 could be met without differentiating between assets which are being used to obtain central bank funding and assets which, although allocated for such use, are not currently used, including for the provision of emergency liquidity assistance.

View FSB publishes fourth EDTF report on bank risk disclosures, 7 December 2015