The Basel Committee has published a proposal to significantly revise the Pillar 3 capital disclosure standards for internationally active banks. By way of background, Pillar 3 of the Basel framework aims to promote market discipline through qualitative and quantitative regulatory disclosure requirements.
The main objectives of today’s proposed changes include further enhancing the comparability and consistency of disclosures (both across time and across banks) and providing greater transparency of banks’ internal capital calculation models and methodologies.
Overall themes. The new disclosure requirements embody, among others, the following overall themes:
- Longer and more detailed disclosures.