|
|
|
|
Enhancing Bank Transparency
7. Conclusion
- The Basle Committee considers bank transparency to be of the utmost importance. Financial market players can reinforce the efforts of bank supervisors if they have access to timely and reliable information which enables them to assess a bank's activities and the risks inherent in those activities. Toward this end, banks and bank supervisors need to ensure that appropriate disclosures are being made.
- To achieve transparency a bank, in its financial reports and other disclosures to the public, should provide timely information on key factors affecting market participants' assessment of banks. This paper sets forth the following six broad categories of information, each of which should be addressed in clear terms and appropriate detail to help achieve a satisfactory level of bank transparency:
- financial performance;
- financial position (including capital, solvency and liquidity);
- risk management strategies and practices;
- risk exposures (including credit risk, market risk, liquidity risk, and operational, legal and other risks);
- accounting policies; and
- basic business, management and corporate governance information.
- In the paper, specific examples of useful information within each category are provided. Supervisors and public policy makers should focus their efforts on promoting high-quality disclosure standards, taking into consideration the recommendations presented in this paper, and on developing mechanisms that ensure compliance with those standards.
- The Basle Committee considers transparency to be a key element of an effectively supervised, safe and sound banking system. The Committee will continue to promote transparency, including by developing more detailed disclosure guidance in some of the areas identified in this report.
|
Contact us *
Risk Library *
Documents by Author *
Committees at the Bank for International Settlement (BIS) *
Enhancing Bank Transparency
|
