BCBS D432

Definition

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

Title

Pillar 3 disclosure requirements - updated framework - consultative document.

Abstract

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

• Publication Date: February 2018
• Publication Type: Consultative
• Publication Status: Closed
• Publication Category: Operational Risk
• Number of Pages: 70
• Keywords: Disclosure, Operational Risk, Credit Risk, Pillar 3

See Also

• BIS Website: Web Page
• PDF File: Download

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