Basel committee revises banks’ disclosure requirements

Global banking regulators are updating banks’ disclosure requirements to reflect changes to the capital rules on market risk.

The Basel Committee on Banking Supervision has finalized revisions to the market risk reporting requirements for large global banks.

The new disclosure requirements, which take effect on Jan. 1, 2023, have been updated to reflect changes to the minimum capital requirements for market risk under the Basel III capital rules.

Among other things, those revisions introduced a “traffic light” approach for capital requirements, and implemented a simplified standardized approach as an alternative way of calculating capital requirements for market risk.

The Basel Committee also issued standards for voluntary disclosure of sovereign exposures.

The group noted that the standards remain voluntary as regulators haven’t reached a consensus on the regulatory treatment of sovereign exposures.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.