The Basel Committee has released a technical amendment on additional Pillar 3 disclosure requirements for those jurisdictions implementing an expected credit loss (ECL) accounting model as well as for those adopting transitional arrangements for the regulatory treatment of accounting provisions.

To provide users with disclosures that fully reflect any transitional effect of the impact of ECL accounting on regulatory capital, the following disclosures in the Pillar 3 standard will apply:

• Template KM2. Additional disclosures require banks to disclose the “fully loaded” impact of ECL transitional arrangements used in total loss absorbing capacity resources and ratios;
• Template CR1. Additional disclosures on the allocation between general and specific provisions for standardised exposures; and
• Table CRB. Banks are required to disclose the rationale for their categorisation of ECL accounting provisions in general and specific categories for standardised approach exposures.

The revised templates are in Annex 1 of the technical amendment.

The additional amendments will come into effect from 1 January 2019 and are applicable for banks using an ECL accounting model after this date as well as for those banks using transitional arrangements for the regulatory treatment of accounting provisions.