The Basel Committee consults on revisions to the Pillar 3 disclosure framework
11 March 2016
The Basel Committee on Banking Supervision has today issued for consultation Pillar 3 disclosure requirements - consolidated and enhanced framework. Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements. The proposed enhancements issued today include:
- the addition of a "dashboard" of key metrics,
- a draft disclosure requirement of hypothetical risk-weighted assets calculated based on the Basel framework's standardised approaches, and
- enhanced granularity for disclosure of prudent valuation adjustments.
Today's proposal also incorporate additions to the Pillar 3 framework to reflect ongoing reforms to the regulatory framework. These include, for example, disclosure requirements for:
- the total loss-absorbing capacity (TLAC) regime for global systemically important banks,
- the proposed operational risk framework, and
- the final standard for market risk.
The Committee's proposal would also consolidate all existing Pillar 3 disclosure requirements of the Basel framework, including the leverage ratio and liquidity ratios disclosure templates. Together with the Revised Pillar 3 disclosure requirements issued in January 2015, the proposed disclosure requirements included in this consultation would comprise the single Pillar 3 framework.
The Committee welcomes comments from both Pillar 3 users and preparers on the proposals described in this consultative document here by Friday 10 June 2016. All comments will be published on the website of the Bank for International Settlements unless a respondent specifically requests confidential treatment.