Pillar 3 disclosures transition to machine-readable format
The Basel Committee on Banking Supervision approved a final standard for machine-readable Pillar 3 disclosures and tightened rules against bank window-dressing at its meeting in Indonesia. The committee also agreed to consult on guidance for interest rate risk in the banking book.
From static PDF to structured data
The Basel Committee on Banking Supervision finalized a new standard requiring banks to publish Pillar 3 risk metrics in a machine-readable format rather than PDF files, with publication set for late 2026.
During its meeting in Indonesia on September 28–29, 2026, the Committee approved revisions to the framework for global systemically important banks (G-SIBs) to curtail year-end window-dressing behavior.
Regulators also agreed to consult next month on additional Pillar 2 guidance addressing interest rate risk in the banking book after identifying management shortcomings.
Furthermore, the Committee initiated a review of operational risk loss categories to capture rising cyber threats and artificial intelligence risks.
Addressing blind spots and fragmentation
The meeting advanced multiple regulatory reviews spanning liquidity and cross-border systemic risk.
The Committee will consult on whether to treat intra-European banking union exposures as domestic in the G-SIB methodology.
Committee Chair Erik Thedéen stated that the discussions aimed “to ensure that the Committee’s governance and delivery mechanisms are results-oriented, relevant and responsive” to market developments.
Final assessment reports on leverage ratio implementation across six member jurisdictions will also be published this month.
Long overdue, but execution remains voluntary
Replacing PDF disclosures with structured data is a long overdue technical fix.
Yet tackling balance-sheet window dressing and interest rate risks through non-binding guidance reveals regulatory timidity.
Without formal enforcement powers, the Committee remains dependent on national watchdogs.