The Basel Committee has finalized proposed standards laying out an array of new disclosures designed to improve the consistency and comparability of public releases on risk-based and leverage capital. These requirements include both general principles and an array of new disclosures large banks will need to make to demonstrate their compliance with the Basel III Accord and an array of related global requirements. These standards dictate disclosures under the 2010 Basel III rules even though the Committee has now embarked on extensive revisions to the standardized models for credit risk, operational risk, and risk housed in the trading book. The currently-finalized standards are largely risk-based and may only partially ensure the comparability Basel seeks. When and if all the other rules are finalized, comparability will improve, albeit at the cost of another round of disclosure rewrites and more reliance on standardized requirements that may mask actual risk.
The full report is available to retainer clients. To find out how you can sign up for the service, click here