The Basel Committee consults on revisions to the Pillar 3 disclosure framework

11 March 2016

The proposed enhancements include the addition of a "dashboard" of key metrics; a draft disclosure requirement of hypothetical risk-weighted assets calculated based on the Basel framework's standardised approaches, and enhanced granularity for disclosure of prudent valuation adjustments.

Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements.

The Basel Committee on Banking Supervision's proposal also incorporate additions to the Pillar 3 framework to reflect ongoing reforms to the regulatory framework. These include, for example, disclosure requirements for:

• the total loss-absorbing capacity (TLAC) regime for global systemically important banks,
• the proposed operational risk framework, and
• the final standard for market risk.

The Committee's proposal would also consolidate all existing Pillar 3 disclosure requirements of the Basel framework, including the leverage ratio and liquidity ratios disclosure templates. Together with the Revised Pillar 3 disclosure requirements issued in January 2015, the proposed disclosure requirements included in this consultation would comprise the single Pillar 3 framework.

The Committee welcomes comments from both Pillar 3 users and preparers on the proposals described in this consultative document here by Friday 10 June 2016.

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