This final standard has the aim of improving transparency of internal model based approaches that banks use to calculate minimum regulatory capital requirements. This updated standard builds upon the Basel Committee's June 2014 consultation paper. It brings about the following key changes:
- rebalancing the disclosures required quarterly, semi-annually and annually;
- streamlining the requirements related to disclosure of credit risk exposures and credit risk mitigation techniques; and
- clarifying and streamlining the disclosure requirements for securitisation exposures.
The requirements will come into effect by the end of 2016.