An important component of the framework of capital measurement and capital standards is the public disclosure of regulatory information. The standard sets minimum requirements for the public disclosure of information on banks’ risk profile, risk management, capital adequacy, capital instruments and remuneration practices so as to contribute to the transparency of financial markets and to...

This paper investigates the impact of mandatory risk disclosure on the design of foreign bank debt. The Basel II and III Accords require the public disclosure of bank regulatory information under the Pillar 3 or market discipline framework. The new information details bank risk exposures and management strategies, capital adequacy and remuneration practices to enhance...

Theory suggests that increasing the public availability of regulatory information may hurt the information environment of bank stocks. It is therefore not clear whether the Basel Accord’s intent to foster market discipline by requiring banks to publish information on their risk management practices and exposures is beneficial. Using a sample of the 54 largest banks...

This paper examines the role of Basel Pillar 3 risk reporting in improving market transparency. Pillar 3 reporting requirements vary widely across countries. This study informs regulators and market participants on the efficacy of Pillar 3 risk reporting with several policy implications.