27 November 2015

EBA provides assessment of banks' Pillar 3 reports for 2015

The EBA released its assessment of the annual Pillar 3 reports of a sample of European banks, which relate to the 2014 financial year. This is the first report since the entry into force of the CRR that assesses banks' compliance against the disclosure requirements laid down in CRR.

The assessment focuses both on those areas where the Capital Requirements Regulation (CRR) introduced new disclosure requirements, as well as on aspects where the EBA's previous assessments had identified needs for improvement.

Overall, the European Banking Authority (EBA) has observed an increase in the quality of disclosures but compliance with new disclosure requirements is still work in progress.

Among the areas where improvements have taken place are the provision of clear disclosure indices and the presentation of information on risk model parameters in a tabular format.

However, disclosures on own funds and capital requirements could be further improved especially with regards to  deductions due to prudential filters and the breakdown of capital requirements by exposure classes.

Similarly, disclosures on internal ratings-based (IRB) models could be enhanced for the breakdown of IRB risk parameters by exposures and by geography.

Finally, disclosures on the assessment of the global systemically important institutions (G-SII) status, remuneration and asset encumbrance are more satisfactory but could be improved.

This report also compares the revised Basel Pillar 3 requirements issued by the Basel Committee in January 2015 with the current CRR disclosure requirements.

Full news

EBA report on banks’ transparency in their 2014 pillar 3 reports

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