Many banks have made big steps forward, but there is still room for improvement.
The banking sector continues to take steps to improve investor confidence in financial reports.
Our In the Headlines provides a high-level summary of the report and its findings.
The report looks at disclosures in the 2013 annual reports of 41 systemically important banks, including 29 global systemically important banks.
The level and quality of disclosures was analysed from two perspectives:
Both the participating banks and the user group concluded that the level of implementation of the recommendations has increased compared with the previous review.
However, a gap persists between the banks’ self assessments and the assessments of the user group.
“Restoring trust and enhancing transparency are key issues for the banking sector. Many banks have made big steps forward in improving disclosures but there is still room for improvement.”
Caron Hughes, partner, Financial Services, KPMG in China; leader, Capital Adequacy and Risk-Weighted Assets workstream, EDTF
Banks have made significant progress in implementing the EDTF’s recommendations, and implementation is nearly complete in some jurisdictions.
However, the Financial Stability Board and the EDTF both believe that there is still work to be done in supporting this initiative and exploring new ways to refine and update its recommendations in the future.
In line with this approach, the progress report includes a summary of lessons learned that banks can consider in improving their disclosures.
Visit our IFRS for Banks hot topics page for the latest on IFRS developments that directly impact banks, and the potential accounting implications of regulatory requirements.
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