The European Banking Authority (EBA) has proposed an update to its guidelines on regulatory disclosure requirements, after the Basel Committee updated its 'Pillar 3' requirements. 01 Jul 2016
The Basel Committee is the primary global standard-setter for the regulation of banks. Its Pillar 3 framework lays out formats and frequencies for institutions to disclose information in a consistent and comparable way. The Committee announced changes to Pillar 3 in January 2015.
As part of those changes, Pillar 3 is now going to be incorporated into the Capital Requirements Regulation (CRR), a move that will require a "comprehensive review" of the CRR disclosure requirements, the EBA said. The EBA has therefore changed its own guidelines to help banks to comply with both the CRR and Pillar 3 in the meantime, it said.
The guidelines apply to globally and other systemically important institutions (G-SII and O-SII) and do not waive the requirements for these and other institutions to comply with other CRR disclosure requirements, the EBA said.
The guidelines will apply for disclosures at the end of 2017, but the EBA recommends that G-SIIs should implement disclosures on risk-weighted assets and capital requirements by year-end 2016 to allow users to compare information internationally.
The EBA has launched a consultation on its proposed changes, which will run until 29 September.