Basel Committee on Banking Supervision Finalizes Phase 2 of Revisions to the Pillar 3 Disclosure Framework

The Basel Committee on Banking Supervision has published a consolidated and enhanced Pillar 3 disclosure framework standard. The Basel Committee announced in June 2014 that it was undertaking a review of Pillar 3. In January 2015, it issued its revised Pillar 3 disclosure requirements, completing the first phase of the review. This latest publication represents the second phase of the review. The new standard includes enhancements to the revised Pillar 3 framework, such as key regulatory metrics to provide an overview of a bank's prudential position, and a new disclosure requirement for prudent valuation adjustments. It also includes revisions arising from recent developments, such as the new disclosure requirements arising from the total loss-absorbing capacity regime for global systemically important banks and the revised standard on market risk issued on January 14, 2016. The new standard consolidates all 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.

The new standard does not include disclosure requirements arising from the Committee's finalization of the Basel III reforms, which is ongoing. Any further disclosure requirements will be included within the scope of the third phase of the review of the Pillar 3 framework.

The implementation date for each requirement is set out in the revised standard. According to the Basel Committee's press release, the implementation date for existing disclosure requirements consolidated under the standard will be the end of 2017 in most cases. The implementation dates for new disclosure requirements or those that depend on the implementation of another policy framework are aligned with the implementation date of that framework.

View the Pillar 3 disclosure framework.