29 June 2016
The European Banking Authority (EBA) launched today a consultation on a set of Guidelines on regulatory disclosure requirements following an update of the Pillar 3 requirements by the Basel Committee in January 2015. These Guidelines are part of the EBA's work to improve and enhance the consistency and comparability of institutions' disclosures and aim to ensure market discipline. The consultation runs until 29 September 2016.
The revised Pillar 3 framework, which applies as of 31 December 2016, provides for common format and harmonised frequencies for the disclosure of existing requirements as well as adds certain new requirements.
The incorporation of the revised Pillar 3 into the CRR would requires an update of the disclosure requirements laid down in the Capital Requirements Regulation (CRR), which will only take place as part of a comprehensive review process of the regulation. In the meantime, EU banks will face market pressure to provide disclosures in line with the revised Pillar 3 when it becomes applicable.
The aim of these Guidelines is, therefore, to provide guidance to institutions to enable them to comply with the CRR provisions while implementing the revised Basel Pillar 3 requirements. 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 the other CRR disclosure requirements for which the Guidelines offer no guidance.
The Guidelines will apply for the year-end 2017 disclosures. However, G-SII are recommended to implement a limited subset of disclosures relating to risk-weighted assets (RWA) and capital requirements as soon as year-end 2016 so as to provide users with information suitable for comparison with international peers.
Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. All contributions received will be published following the close of the consultation, unless requested otherwise. Please note that the deadline for the submission of comments is 29 September 2016.
A public hearing will take place at the EBA premises on 6 September 2016 from 10.00am to 12.00pm UK time.
The EBA has developed these Guidelines on its own initiative according to Article 16 of its founding Regulation to allow institutions to implement the revised Pillar 3 framework in a way that is consistent with the existing disclosure requirements in the CRR.