EBA publishes follow-up review of banks transparency in their 2012 reports
09 Dec, 2013
The European Banking Authority (EBA) published today its assessment of the disclosures made by 19 European institutions in response to the Basel Pillar 3 requirements, as set out in the EU Capital Requirements Directive (CRD). In their view, despite improvements in some specific areas, credit institutions' compliance with disclosure requirements has not improved from last year's assessment, where no bank had fully met all the requirements. The report also highlights that the comparability and consistency of disclosures between the different institutions could be improved.
This report from the EBA focusses, in particular, on those areas where a need for improvement has been previously identified, such as the scope of application, own-funds and disclosures related to credit exposures under the Internal Ratings Based (IRB) approach, securitisation, market risk and remuneration. For each of these areas, the report identified best practices, and encourages institutions to implement them.
The report highlights some improvements in relation to the scope of application and own-funds disclosures. However, disclosures regarding credit exposures under the IRB approach, securitisation activities and market risk have showed only marginal improvements, if any. Disclosures on remuneration were assessed as satisfactory, although the EBA believe that, in general, quantitative information could be improved.
The EBA's report is available from their website here.
