Global banking regulators published new guidance on Friday on the details of the public disclosure that banks must make under the capital adequacy regime, known as Basel III.
The Basel Committee on Banking Supervision issued a “frequently asked questions” (FAQ) document on the disclosure requirements under the new capital regime. The FAQ addresses issues such as risk management and risk-weighted asset (RWA) disclosures; reporting credit, counterparty and market risk; and the linkages between banks’ financial statements and their regulatory exposures.
The committee indicates that it has received several questions related to the latest version of the disclosure requirements, which were revised in January 2015, and that it’s publishing the guidance, “to promote consistent global implementation of the requirements.”
Those revisions take effect at the end of 2016 and are intended to make it easier for the market to better compare banks’ disclosures of RWAs. In particular, they aim to improve the transparency of the internal models that banks use to calculate their regulatory capital requirements.
The committee says it will continue to review and update the guidance as necessary.