Targeted EBA peer review finds high compliance on Pillar 3 disclosures but calls for greater consistency

The European Banking Authority (EBA) today published the results of its targeted Peer Review on the supervision of compliance with the Capital Requirements Regulation (CRR) and the Bank Recovery and Resolution Directive (BRRD) provisions aiming to facilitate market discipline through bank disclosure (“Pillar 3”). The Review found that the competent authorities under review have fully or largely embedded Pillar 3 requirements into their supervisory frameworks and that their practices are efficient overall. Consistency across jurisdictions could, however, improve.

Scope of the Review

The peer review assessed supervisory performance across four key areas between 1 June 2023 to 30 June 2025:

• Integration of Pillar 3 requirements into supervisory frameworks, including manuals, methodologies, and internal guidance;
• Effectiveness of supervisory arrangements for reviewing institutions’ disclosures and related governance frameworks, including internal processes and controls;
• Robustness of processes used to assess institutions’ Pillar 3 disclosures, including selected disclosure templates;
• Supervision and enforcement of institutions’ compliance with Pillar 3 requirements, including measures taken to address deficiencies.

Key Findings

Most competent authorities have fully or largely embedded Pillar 3 requirements into their supervisory frameworks, demonstrating a high degree of convergence across the EU. Four authorities were identified as having implemented these requirements to a very high standard, reflecting advanced supervisory practices and implementation of the relevant legal provisions.

However, some differences remain:

• One authority was rated “partially applied” across all benchmarks. While gaps were identified, corrective actions are already underway to strengthen supervisory tools and processes;
• Another authority received mostly “not applied” ratings, due to the absence of formal methodologies and processes to systematically assess compliance. This reflects its view that Pillar 3 non-compliance poses limited financial stability risks, warranting lower supervisory prioritisation.

Notes to editors

EBA peer reviews assess and compare how competent authorities implement and supervise EU regulatory requirements and the effectiveness of their supervisory practices. They aim to strengthen consistency of supervisory outcomes across the EU and to promote convergence by identifying best practices, gaps and areas for improvement. Peer reviews may also lead to follow‑up measures, including recommendations, to enhance supervisory effectiveness.