Enhancements to the Pillar 3 disclosure framework issued by the Basel Committee
29 March 2017
The Basel Committee on Banking Supervision has today issued Pillar 3 disclosure requirements - consolidated and enhanced framework. This standard represents the second phase of the Committee's review of the Pillar 3 disclosure framework and builds on the revisions to the Pillar 3 disclosure published by the Committee in January 2015.
The Pillar 3 disclosure framework seeks to promote market discipline through regulatory disclosure requirements. The enhancements in the standard contain three main elements:
consolidation of all existing Basel Committee disclosure requirements into the Pillar 3 framework;
introduction of a "dashboard" of banks' key prudential metrics and a new disclosure requirement for banks which record prudent valuation adjustments; and
- updates to reflect ongoing reforms to the regulatory framework, such as the total loss-absorbing capacity (TLAC) regime for globally systemically important banks and the revised market risk framework published by the Committee in January 2016.
The standard incorporates feedback from Pillar 3 preparers and users collected during the public consultation conducted in March 2016. Clarifications have been made relating to the disclosure requirements, in particular those pertaining to TLAC.
The implementation date for each of the disclosure requirements is set out in the standard. In general, the implementation date for existing disclosure requirements consolidated under the standard will be end-2017. For disclosure requirements which are new and/or depend on the implementation of another policy framework, the implementation date has been aligned with the implementation date of that framework.