24 June 2009

CEBS’ outcome of its assessment reports of banks disclosures

The outcome of CEBS’ review of banks transparency in their 2008 audited annual reports showed improvements whereas the analysis of Pillar 3 disclosures indicates a need for further convergence.

CEBS published two reports setting out the outcome of its efforts in assessing banks’ disclosures published.

 

The outcome of CEBS’s review of banks' transparency in their 2008 audited annual reports showed improvements whereas the analysis of Pillar 3 disclosures indicates a need for further convergence.

 

Assessment of 2008 annual report disclosures

The report reveals that the CEBS June 2008 good practices have been covered quite extensively in many cases. As previously the disclosures vary to some extent in terms of the level of detail but generally the granularity seems to be in line with the way banks have been affected by the crisis.

 

The findings of the analysis show that the CEBS good practices have been covered quite extensively by many bank and notes a a significant increase of disclosures compared to the previous analyses. However, there are a number of areas, mostly in the context of accounting-related disclosures, where disclosures could be further improved, including disclosures on fair value measurement and related methodologies.

 

Assessment of 2008 Pillar 3 disclosures

CEBS also analysed the Pillar 3 disclosures provided by 25 banks and recognises that a huge effort has been made to provide market participants with information.Banks have notably enhanced the level of quantitative and qualitative information regarding credit risk and securitisation activities.

 

However, there are specific areas where further improvements could be made:

Ø        the composition and characteristics of own funds;

Ø        the back testing information for credit risk and market risk;

Ø        the quantitative information on credit risk mitigations and counterparty credit risk; and

Ø        the granularity of information on securitisations.

 

CEBS will hold an open meeting is foreseen to be held in early autumn 2009.

 

Press Release

Full Report: Assessment of 2008 annual report disclosures

Full report: Assessment of 2008 Pillar 3 disclosures

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