EBA has published the results of its analysis of 19 banks’ 2011 Pillar 3 reports. It identifies need for improving disclosures on market, securitisation and credit risks. It says banks using an Internal Ratings Based approach should increase “back-testing” disclosures, with better information about the assumptions underlying internal models. They should also provide a comparison between expected and actual losses for a period of at least three years. EBA has also expressed its preference for Pillar 3 information being published at the same time as remuneration disclosures and annual accounts and reports. In the second half of the document, a thematic study on the impact of Basel 3 and the EBA recapitalisation exercise shows a need for greater comparability and standardisation of disclosures. (Source: EBA Review of Banks’ Transparency in 2011 Pillar 3 Reports)