Basel moves on disclosure

The Basel Committee on Banking Supervision recently announced two significant revisions to its new capital adequacy framework (new Basel Capital Accord or Basel II), which are set to have positive and far-reaching implications for the global banking community. The September 28 announcements pertaining to the reduction in the volume of information needed to be disclosed by banks under Basel II's pillar 3, and the trimming of the controversial capital charge from 20% to 12%, are sure to be well received by bankers after 280 less than positive comments were posted on the Basel website in response to the Basel II proposals in January this year.

Regulators have significantly reduced the number of items of information required from banks under pillar 3. Pillar 3 requires the effective disclosure of information by banks to strengthen market discipline as a complement to supervisory efforts. In the light of the comments received during the consultation period after the publication of Basel II, the Committee has considered the possibility of streamlining the proposals, although according to the Committee, this "represents neither a full