Following the first stage of the Basel Committee’s revised Pillar 3 disclosure requirements (in January 2015) the Committee has now completed the second stage.
Following the first stage of the Basel Committee’s revised Pillar 3 disclosure requirements (in January 2015) the Committee has now completed the second stage (PDF 191 KB).
This second stage introduces:
Overall, this combination of consolidation and enhancement results in the specification of 63 templates that banks should complete and publish (although not all the templates are relevant to all banks).The frequency of reporting varies across the templates, with some being quarterly, some half-yearly, and some annual.
Reflecting the state of policy development and the implementation dates for each policy, the implementation date for each template also varies. Many apply from end-2016, but others will be introduced from end-2017 (leverage ratio, LCR), 2018 (composition of capital, NSFR, interest rate risk in the banking book, and PVA adjustments), and 2019 (TLAC, and the second phase of market risk).
This second stage does not include any disclosure requirements that may arise from the Committee’s “finalisation of Basel III” (credit risk, operational risk and any “capital floor”).The Committee has therefore commenced work on a third stage of its review of Pillar 3, to develop disclosure requirements for:
Although Basel requirements are not binding immediately on banks, they do provide insights into supervisory expectations of best practice and they also ultimately inform the EU rule makers.