The Basel Committee on Banking Supervision on Friday issued proposed new disclosure requirements banks must follow under the Basel III capital adequacy regime.
The committee sets disclosure standards under the capital rules in a bid to facilitate market discipline by ensuring that investors get adequate disclosure of banks’ capital positions.
Among the proposals issued Friday, the committee would require banks to produce a new “dashboard” of key metrics; to disclose hypothetical risk-weighted assets calculated under the Basel framework’s standardized approaches; and, enhanced disclosure of prudent valuation adjustments.
The proposals also include the obligation to report total loss-absorbing capacity (TLAC) for global systemically important banks, and impose requirements under the proposed operational risk framework and the final standard for market risk.
They would also consolidate all existing disclosure requirements, including the leverage and liquidity ratios.
Comments on the proposals are due by June 10.