Introduction

7.1 This chapter provides feedback to responses to chapter 11 of consultation paper (CP) 16/22 - Implementation of the Basel 3.1 standards, which set out proposals to update the Prudential Regulation Authority's (PRA) Pillar 3 disclosure requirements to reflect its proposals on calculating Pillar 1 risk-weighted assets (RWAs). This chapter also sets out the PRA's near-final policy on disclosure (Pillar 3) following the consultation.

7.2 In CP16/22, the PRA proposed to:

- update disclosure requirements in respect of credit risk, market risk, credit valuation adjustment (CVA) risk, counterparty credit risk (CCR), operational risk and the output floor, as well as capital and risk management summaries;

- modify, delete existing and introduce new disclosure templates to align with the disclosure requirements under the Basel 3.1 standards and reflect the proposals set out in the CP; and

- continue to apply the existing proportionality approach set out in the Disclosure (CRR) Part of the PRA Rulebook whereby the frequency of disclosure is varied according to a firm's size category and listing status.

7.3 The PRA received ten responses to its proposals on disclosure (Pillar 3) relating to:

- clarifications on the technical detail of the disclosure templates and instructions;

- identification of minor errors within the disclosure templates and instructions;