The Basel Committee on Banking Supervision has today issued for consultation Pillar 3 disclosure requirements - updated framework. Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements. Many of the proposed disclosure requirements published today are related to the finalisation of the Basel III post-crisis regulatory reforms in December 2017 and include new or revised requirements:
for credit risk (including provisions for prudential treatment of assets), operational risk, the leverage ratio and credit valuation adjustment (CVA);
that would benchmark a bank's risk-weighted assets (RWA) as calculated by its internal models with RWA calculated according to the standardised approaches; and
that provide an overview of risk management, key prudential metrics and RWA.
In addition, today's publication proposes new disclosure requirements on asset encumbrance and capital distribution constraints.