2015_1843 Disclosure requirement | European Banking Authority Skip to main content
European Banking Authority logo
  • Extranet
  • Log in
  • About us
    Back

    About us

    The EBA is an independent EU Authority.  We play a key role in safeguarding the integrity and robustness of the EU banking sector to support financial stability in the EU.

    Learn more
      • Mission, values and tasks
      • Organisation and governance
        • Governance structure and decision making
        • EBA within the EU institutional framework
        • Internal organisation
        • Accountability
      • Legal and policy framework
        • EBA regulation and institutional framework
        • Compliance with EBA regulatory products
      • Sustainable EBA
      • Diversity and inclusion
      • Careers
        • Vacancies
        • Meet our team
      • Budget
      • Procurement
    Close menu panel
  • Activities
    Back

    Activities

    To contribute to the stability and effectiveness of the European financial system, the EBA develops harmonised rules for financial institutions, promotes convergence of supervisory practices, monitors, and advises on the impact of financial innovation and the transition to sustainable finance.

    Start here
      • Single Rulebook
      • Implementing Basel III in Europe
      • Supervisory convergence
        • Supervisory convergence
        • Supervisory disclosure
        • Peer Reviews
        • Mediation
        • Breach of Union Law
        • Colleges
        • Training
      • Direct supervision and oversight
        • Markets in Crypto-assets
        • Digital operational resilience Act
      • Information for consumers
        • National competent authorities for consumer protection
        • How to complain
        • Personal finance at the EU level
        • Warnings
        • Financial education
        • National registers and national authorities responsible for handling complaints related to credit servicers
        • Frauds and scams
      • Research Workshops
      • Ad hoc activities
        • Our response to Covid-19
        • Brexit
    Close menu panel
  • Risk and data analysis
    Back

    Risk and data analysis

    To ensure the orderly functioning and stability of the financial system in the European Union, we monitor and analyse risks and vulnerabilities relevant for the regulation of banks and investment firms. We also facilitate information sharing among authorities and institutions through supervisory reporting and data disclosure.

    Learn more
      • Risk analysis
        • 2024 EU wide transparency exercise
        • EU-wide stress testing
        • Risk monitoring
        • Thematic analysis
      • Remuneration and diversity analysis
      • Pillar 3 data hub
      • Reporting frameworks
        • Reporting Time Traveller
        • DPM data dictionary
      • Data
        • Registers and other list of institutions
        • Guides on data
        • Aggregate statistical data
        • Secondary reporting: data from Competent Authorities to the EBA
        • Data analytics tools
    Close menu panel
  • Publications and media
    Back

    Publications and media

    Communicating to all our audiences in the most effective way and using the most appropriate channels is crucial for us. Through our publications, announcements, and participation in external events, we are committed to reaching out to all our stakeholders to report about our policies, activities, and initiatives.

    Learn more
      • Publications
        • Guidelines
        • Regulatory Technical Standards
        • Implementing Technical Standards
        • Reports
        • Consultation papers
        • Opinions
        • Decisions
        • Staff papers
        • Annual reports
      • Press releases
      • Speeches
      • Interviews
      • Events
      • Media centre
        • Media gallery
        • Media resources
    Close menu panel

Breadcrumb

  1. Home
  2. Single Rulebook Q&A
  3. 2015_1843 Disclosure requirement
Question ID
2015_1843
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Transparency and Pillar 3
Article
438
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
EBA/GL/2014/14 - Guidelines on materiality, proprietary, confidentiality and disclosure frequency under Pillar 3
Article/Paragraph
23b
Type of submitter
Credit institution
Subject matter
Disclosure requirement
Question

What is the scope, in terms of risk types, of the disclosure requirement under Title VII, paragraph 23b); specifically, does it include Counterparty Credit Risk?

Background on the question

The scope, in terms of risk types, of the disclosure requirement under Title VII, paragraph 23b) is unclear. In particular, it is unclear whether it includes Counterparty Credit Risk or not. Clarification on this regards is important in order to ensure comparable disclosures.

Submission date
19/02/2015
Final answer

Paragraph 23(b) of the Guidelines on materiality, proprietary, confidentiality and disclosure frequency (EBA/GL/2014/14) under Pillar 3 states that institutions meeting one of the indicators specified in paragraph 18 of those Guidelines should pay particular attention to the possible need to provide information required by points (c) to (f) in Article 438 of Regulation (EU) No 575/2013 (CRR). This information is further specified by reference to the amounts of risk-weighted assets and capital own funds requirements by type of risks specified in Article 92(3) of the same Regulation.

Points (c) to (f) of Article 438 require disclosure of a subset of the risk weighted exposure amounts and own funds requirements set out in Article 92(3). It covers credit risk under the Standardised approach (point (c)), credit risk under the IRB approach (point (d)), market risk under the Standardised and in the internal model approach, own funds requirements calculated in accordance with points (b) and (c) of Article 92(3) of CRR  (point (e)) and operational risk under the Basic indicator approach, the Standardised approach and the Advanced measurement approaches (point (f)). Article 438 of CRR does not explicitly refer to counterparty credit risk, which is however, in accordance with Article 107(1) of CRR, a component of the calculation of credit risk under the Standardised and the IRB approaches set out respectively in Chapter 2 and Chapter 3 of Title II of Part Three of CRR. Therefore, the disclosures requested under points (c) and (d) of Article 438 of CRR may include a combined information or a separate information on the component of credit risk and counterparty credit risk. Other specific information on exposure to counterparty credit risk is rather explicitly required under Article 439 of CRR.

In accordance with the second subparagraph of Article 431(3), where disclosures do not convey an institution’s risk profile comprehensively to markets participants, institutions shall publicly disclose the information necessary in addition to that required in accordance with Article 431 (1). Therefore, when disclosures on capital requirements provided in accordance with Article 438 are insufficient to convey their appropriate risk profile to market participants, institutions shall supplement them with additional information. Where this applies to risks not explicitly identified in Article 438 (such as those related to securitisation, counterparty credit risk and CVA risk) disclosures made in accordance with the second subparagraph of Article 431 (3) should be provided in a way that ensures comparability with those required under Article 438 CRR.

Where institutions provide additional information on counterparty credit risk on the aforementioned basis of Article 431(3) CRR, such information should also be subject to additional interim disclosure under paragraph 24 of EBA/GL/2014/14 where the assessment for the need to provide disclosures in Part Eight of CRR more frequently than annually shows that this additional information is necessary to convey the institutions’ comprehensive risk profile to market participants. 

Status
Archive
Answer prepared by
Answer prepared by the EBA.
Note to Q&A

Update 16.09.2021: This Q&A has been archived in light of the change(s) in Article 438 to Regulation (EU) No 575/2013 (CRR), applicable from 28.06.2021.

Footer

EUROPEAN BANKING AUTHORITY

Our mission is to contribute to the stability and effectiveness of the European financial system through simple, consistent, transparent, fair regulation and supervision that benefits all EU citizens.


UE logoAn agency of the EU

EU Agencies Network logoEU Agencies Network

EMAS logoSustainable EBA

Contact us

  • Contacts
  • Ask a general question
  • Send a press query
  • Ask a regulatory question
  • File a complaint
  • Whistleblower reports

Stay up to date with our work

  • Subscribe to our email alerts
  • News & press RSS feed

Follow us on Social media

  • Bluesky
  • LinkedIn
  • X
  • YouTube

Find out about us

  • The EBA at a glance
  • Vacancies
  • Privacy policy
  • Legal notice
  • Cookies policy
  • Frauds and scams

Explore related sites

  • EIOPA
  • ESMA
  • ESRB
  • CEBS archive