Pillar 3 disclosure requirements – consolidated and enhanced framework
This BCBS standard contains three main elements:
- Consolidation of all existing Basel Committee disclosure requirements into the Pillar 3 framework, covering the composition of capital, the leverage ratio, the liquidity ratios, the indicators for determining globally systemically important banks, the countercyclical capital buffer, interest rate risk in the banking book and remuneration.
- Introduction of a "dashboard" of banks’' key prudential metrics which will provide users of Pillar 3 data with an overview of a bank’s prudential position and a new disclosure requirement for banks which record prudent valuation adjustments to provide users with a granular breakdown of its calculation.
- Updates to reflect ongoing reforms to the regulatory framework, such as the total loss-absorbing capacity (TLAC) regime for globally systemically important banks and the revised market risk framework published by the Committee in January 2016.
The implementation date for each of the disclosure requirements is set out in the standard. In general, the implementation date for existing disclosure requirements consolidated under the standard will be end-2017.