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Pillar 3 Basel III Public Disclosure Guide

Overview

Pillar 3 is the market discipline component of the Basel III framework, requiring banks to publicly disclose risk and capital information in standardized templates. This enables investors, analysts, and counterparties to assess bank risk profiles.

Reporters

G-SIBs and large internationally active banking organizations. In the U.S., this includes the 8 U.S. G-SIBs plus other large banks subject to advanced approaches.

Template Categories

Overview & Key Metrics

  • KM1: Key capital and liquidity ratios (CET1, Tier 1, Total Capital, Leverage, LCR, NSFR)
  • KM2: TLAC metrics for G-SIBs
  • OV1: RWA overview by risk category (credit, market, operational)

Credit Risk (CR1-CR5)

  • CR1: Asset quality - performing vs. defaulted, provisions, write-offs (links to HC-N)
  • CR2: Changes in defaulted loan stock (flow statement)
  • CR3: Credit risk mitigation techniques (collateral, guarantees)
  • CR4: Standardized approach credit RWA by exposure class
  • CR5: IRB approach credit RWA with PD/LGD detail (links to FFIEC 101)

Counterparty Credit Risk (CCR1-CCR8)

  • CCR1: CCR exposure by approach (SA-CCR, IMM)
  • CCR2: CVA capital charge (links to Y-14Q Schedule E.2)
  • CCR5: Collateral for OTC derivatives (IM, VM)
  • CCR6: Credit derivatives in CCR hedging (links to HC-L BHCKC968-C975)
  • CCR8: CCP exposures (links to HC-L)

Market Risk (MR1-MR4)

  • MR1: Market risk capital charges under IMA (links to FFIEC 102)
  • MR2: RWA flow statement for market risk
  • MR3: VaR and stressed VaR levels by risk factor
  • MR4: Backtesting - VaR vs. actual P&L (links to Y-14Q Schedule G.2)

Securitization (SEC1-SEC4)

  • Banking book and trading book securitization exposures
  • Originator/sponsor and investor perspectives

Liquidity (LIQ1-LIQ2)

  • LIQ1: LCR components (HQLA, outflows, inflows) - derived from FR 2052a
  • LIQ2: NSFR components (ASF, RSF) - derived from FR 2052a

Operational Risk (OR1-OR3)

  • Historical losses, business indicators, capital charge

Leverage (LR1-LR2)

  • Supplementary leverage ratio detail (links to FFIEC 101 Schedule F)

Remuneration (REM1-REM3)

  • Senior management and material risk-taker compensation

Cross-Form Reference Matrix

Pillar 3 Primary Source Key MDRM Codes
KM1 HC-R BHCAP859, BHCA8274, BHCA3792, BHCAA223
CR1-CR2 HC-N BHCK1403, BHCK5524, BHCK5525
CCR1-CCR8 HC-L BHCK8693-8740, BHCKC968-C975
MR1-MR4 FFIEC 102 VaR, sVaR, IRC, CRM components
LIQ1-LIQ2 FR 2052a LCR, NSFR calculations
OV1 HC-R Part II BHCAA223 (total RWA)

Banks Covered in Knowledge Base

Bank RSSD ID Quarters Available
Bank of America 1073757 2024Q4, 2025Q3
Citigroup 1951350 2024Q2, 2024Q3
JPMorgan Chase 1039502 2024Q1, 2024Q4
Morgan Stanley 2162966 2024Q4, 2025Q3
Wells Fargo 1120754 2024Q2, 2025Q1

Key Analytical Uses

  1. Cross-Bank Comparison: Standardized templates enable direct comparison
  2. VaR Analysis: MR3/MR4 provide VaR levels and backtesting across banks
  3. Credit Quality Trends: CR1/CR2 track NPL migration over time
  4. Capital Adequacy: KM1 provides comparable capital ratios
  5. Derivatives Risk: CCR templates reveal concentrated counterparty exposures
  6. Liquidity: LIQ1/LIQ2 show LCR/NSFR compliance margins

Repository Files

  • csv/PILLAR3_TEMPLATES.csv - Template reference (26 items)
  • csv/PILLAR3_GSIB_DISCLOSURE.csv - Cross-bank disclosure items
  • csv/GSIB_ENTITY_IDENTIFIERS.csv - Bank identifiers

Part of the Bank Regulatory Data Dictionary