EBA Publishes Follow-up Review of Banks' Transparency in their 2010 Pillar 3 Reports
The European Banking Authority (EBA) has published its follow-up review of bank’s transparency in their 2010 Pillar 3 reports.
This report continues a body of work carried out on an annual basis since 2008 by the predecessor of the European Banking Authority (EBA), the Committee of European Banking Supervisors (CEBS). Pillar 3 reports are of special interest because of the interaction between Pillar 3 and IFRS 7 requirements. EBA hopes to initiate a discussion on this issue.
Overall, EBA finds "that banks have made efforts to improve their disclosures and to convey their risk profile in a comprehensive way to market participants." However, the report also finds that some of the findings from the last report published in June 2010 remain valid.