Basel Committee consults on Pillar 3 disclosure templates related to banks' market risk and sovereign exposures

The Basel Committee on Banking Supervision published today two consultative documents related to Pillar 3 disclosure. The first document proposes a set of revised disclosure requirements related to the market risk framework finalised in January 2019. The second document consults on voluntary disclosure templates related to banks' sovereign exposures.

Revisions to market risk disclosure requirements sets out a set of adjustments to the Pillar 3 templates for the revised market risk framework to reflect changes introduced in Minimum capital requirements for market risk in January 2019. In addition to these changes, the Committee proposes to enhance disclosure of the trading desk structure of banks using the internal models approach by reinforcing a materiality threshold to determine the scope of individual trading desks subject to the requirement.

The consultative document Voluntary disclosure of sovereign exposures proposes disclosures related to banks' exposures to sovereigns, to be implemented when required by the relevant jurisdiction. The templates break down a bank's sovereign exposures by country, currency and accounting treatment. The templates build upon the contents of the Committee's December 2017 discussion paper on the regulatory treatment of sovereign exposures and the feedback received.

The Committee welcomes feedback on both consultative documents. Comments should be uploaded here by 14 February 2020. All comments will be published on the website of the Bank for International Settlements unless the respondent specifically requests confidential treatment.