European banks need to improve certain elements of the disclosure that they are providing under global capital rules, the European Banking Authority (EBA) says in a new report.

The EBA on Friday released an assessment of the disclosure provided by a sample of European banks, under the Basel capital adequacy rules. These requirements are intended to make bank disclosure more consistent, to bolster transparency, and enhance market discipline.

The review focused on banks’ compliance with new disclosure requirements that have been imposed through recent revisions to the capital rules, and on areas where previous assessments of bank disclosure have found room for improvement.Overall, the EBA observed an increase in the quality of disclosures, but that compliance with the new Basel disclosure requirements “is still work in progress”, the EBA report says.

Among other things, the EBA report says that disclosures on internal ratings-based (IRB) models could be enhanced, with the breakdown of risk parameters by exposures and geography. The report adds that disclosures on the assessment of the global systemically important institutions’ status, remuneration, and asset encumbrance could be improved.

The development of standardized formats for certain disclosures has increased the consistency of the information being reported in these areas, the EBA report notes. However, it also found continued challenges in ensuring consistency and comparability for disclosures where standardized formats do not exist.