Basel Committee proposes standardised, machine-readable bank disclosures
The Basel Committee on Banking Supervision is consulting on requiring banks to publish risk disclosures in a standardised, machine-readable format. This aims to enhance data comparison across lenders and facilitate automated analysis using AI. The proposal includes technical specifications but doesn't alter existing requirements. National regulators will decide the data's publication method. The European Banking Authority has already implemented similar reports for large banks.
LONDON, Dec 5 (Reuters) - The Basel Committee on Banking Supervision has launched a three-month consultation on a requirement for banks to publish key risk disclosures in a standardised, machine-readable format to make it easier for investors and analysts to compare data across lenders.
Pillar 3 reports as they are known provide details on banks’ capital and risk exposures to help analysts assess their resilience. Most lenders publish the disclosures as PDFs, the Basel Committee said, which hampers aggregation and analysis.
The rise of artificial intelligence is expected to accelerate automated analysis of such disclosures, making structured data critical for regulators, investors and risk managers.
The global standard-setter is proposing technical specifications for the reports, but will not change existing disclosure requirements. National regulators would decide whether banks post the data on their own websites or via a central repository.
The European Banking Authority introduced machine-readable Pillar 3 reports earlier this year and is onboarding large banks to its new data hub, which will go public this month. The EBA says the shift is part of its push for greater transparency and market discipline.
