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Pillar 3 disclosure

The business as usual impact

The Basel Committee on Banking Supervision (“BCBS”) is focused on regulatory disclosures as a cornerstone of transparency.

A number of regulatory requirements have recently been issued by various regulatory bodies including BCBS and the European Banking Authority (“EBA”) which will impact Pillar 3 reporting for institutions.

There are two particular aspects to the requirements of which firms need to be aware. Firstly, the requirements are driving Pillar 3 disclosures to become an integrated ‘business as usual’ reporting requirement for firms, rather than a standalone project exercise. This is not unexpected as Regulators are becoming more data intensive as evidenced by BCBS 239 data aggregation principles and large data exercises such as the comprehensive assessment, stress testing and AnaCredit. Secondly, the content of the disclosures is increasing and this is leading to a number of challenges for firms.

This article explores the requirements and challenges in more detail.

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