11 December 2018

Basel Committee publishes updated Basel III disclosure requirements

Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements. The revised Pillar 3 framework reflects the Committee's December 2017 Basel III post-crisis regulatory reforms and pertains to the following areas:

• credit risk, operational risk, the leverage ratio and credit valuation adjustment (CVA) risk;
• risk-weighted assets (RWAs) as calculated by the bank's internal models and according to the standardised approaches; and
• an overview of risk management, RWAs and key prudential metrics.

In addition, the updated framework sets out new disclosure requirements on asset encumbrance and, when required by national supervisors at the jurisdictional level, on capital distribution constraints.

The standard incorporates feedback collected during the February 2018 public consultation from Pillar 3 preparers and users. In particular, the CVA disclosure requirements have been substantially streamlined.

The implementation deadline for the disclosure requirements related to Basel III is 1 January 2022, which accords with the implementation of the Pillar 1 (minimum capital requirements) framework. The implementation deadline for the disclosure requirements for asset encumbrance, capital distribution constraints and the prudential treatment of problem assets has been extended by one year to end-2020, taking account of feedback received from the consultation.

Press release

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