Revised Pillar 3 disclosure requirements

January 2015

The revisions to the disclosure requirements address shortcomings in Pillar 3 of the Basel framework. The revised disclosure requirements will enable market participants to better compare banks' disclosures of risk-weighted assets. They form part of the Committee's broader agenda to reform regulatory standards for banks in response to the global financial crisis. The revisions notably focus on improving the transparency of the internal model-based approaches that banks use to calculate minimum regulatory capital requirements.

The revised requirements will take effect from year-end 2016. The revised requirements supersede the existing Pillar 3 disclosure requirements first issued as part of the Basel II framework in 2004 and the Basel 2.5 revisions and enhancements introduced in 2009. The most significant revisions with respect to the previous Pillar 3 disclosure requirements relate to the use of templates for quantitative disclosure accompanied with definitions, some of them with a fixed format. This aims to enhance comparability of bank's disclosures, both across banks and over time.

The revised standard incorporates feedback from Pillar 3 preparers and users collected during a public consultation. Compared to the consultative version, the key changes are:

  • rebalancing the disclosures required quarterly, semi-annually and annually;
  • streamlining the requirements related to disclosure of credit risk exposures and credit risk mitigation techniques; and
  • clarifying and streamlining the disclosure requirements for securitisation exposures.