Pillar 3 disclosure requirements - consolidated and enhanced framework - consultative document
Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements. The proposed enhancements issued in this consultative document build on revisions to the Pillar 3 disclosure requirements that the Committee finalised in January 2015. Taken together, they form the consolidated and enhanced Pillar 3 framework. The proposals in this consultative document include:
- the addition of a "dashboard" of key metrics,
- disclosure of hypothetical risk-weighted assets calculated based on the Basel framework's standardised approaches, and
- enhanced granularity for disclosure of prudent valuation adjustments.
The proposals also incorporate additions to the Pillar 3 framework to reflect ongoing reforms to the regulatory framework. These include, 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 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.