Basel Committee On Banking Supervision Launches Proposals For A Revised Pillar 3 Disclosure Framework

On March 11, 2016, the Basel Committee on Banking Supervision launched a proposed consolidated and enhanced framework for Pillar 3 disclosures under Basel III. The Basel Committee announced in June 2014 that it was undertaking a review of Pillar 3. In January, it issued its revised Pillar 3 disclosure requirements, completing the first phase of the review. The Basel Committee is now consulting on the second phase of the review which includes:

1. Enhancements to the revised Pillar 3 framework, including: (i) key regulatory metrics to provide an overview of a bank's prudential position; (ii) proposals that banks disclose hypothetical risk-weighted assets calculated according to the standardized approaches for market risk, counterparty credit risk and the securitization framework, which requirements would be subject to finalization of the ongoing review of the standardized approach and the capital floor (a second consultation paper for credit risk was published on