From Open Risk Manual


BCBS D432 is a document published by the Basel Committee on Banking Supervision on February 2018 in the Operational Risk category.


Pillar 3 disclosure requirements - updated framework - consultative document.


The Basel Committee on Banking Supervision has today issued for consultationPillar 3 disclosure requirements - updated framework. Pillar 3 of the Basel framework seeks to promote market discipline through regulatory disclosure requirements. Many of the proposed disclosure requirements published today are related to the finalisation of the Basel III post-crisis regulatory reforms in December 2017and include new or revised requirements:

  • for credit risk (including provisions for prudential treatment of assets), operational risk, the leverage ratio and credit valuation adjustment (CVA);
  • that would benchmark a bank's risk-weighted assets (RWA) as calculated by its internal models with RWA calculated according to the standardised approaches; and
  • that provide an overview of risk management, key prudential metrics and RWA.

In addition, today's publication proposes new disclosure requirements on asset encumbrance and capital distribution constraints.

Separately, the Committee is seeking feedback on the scope of application of the disclosure requirement on the composition of regulatory capital that was introduced in March 2017.

Together with the first phase and second phase of the revised Pillar 3 disclosure requirements issued in January 2015and March 2017 respectively, the proposed disclosure requirements would comprise the single Pillar 3 framework.

The Committee welcomes comments which should be uploadedherebyFriday 25 May 2018. All comments will be published on thewebsite of the Bank for International Settlements unless a respondent specifically requests confidential treatment.

Document Profile

See Also


For definitive information on regulatory matters always consult primary sources, especially where it concerns legally binding rules and regulations.

The above regulatory document abstract is quoted verbatim in this Open Risk Manual entry and provided free of charge for the convenience of all internet users. There is no explicit or implicit endorsement of this web service by the Bank of International Settlements. The copyright of the included material rests with the original authors (Links to the original texts are duly provided).