Basel III Pillar 3 capital disclosures
An important component of the Basel Committee on Banking Supervision's framework of capital measurement and capital standards is the public disclosure of regulatory information (referred to as “Pillar 3” within the framework). These requirements are outlined in APRA Prudential Standard APS 330 Public Disclosure (APS 330). The standard sets minimum requirements for the public disclosure of information on the Group's risk profile, risk management, capital adequacy, capital instruments and remuneration practices so as to contribute to the transparency of financial markets and to enhance market discipline.
The Commonwealth Bank Group is accredited with advanced status for credit and operational risks under the Pillar One minimum capital requirements. The Group is also accredited to use internal models to assess its traded market risk and interest rate risk in the banking book capital requirements under Pillar 1.
The Group is required to report its quarterly assessment of capital adequacy on a Level 2 basis. APS 330 defines Level 2 as the consolidated banking group excluding the insurance and wealth management businesses and the entities through which securitisation of Group assets are conducted.
To view previous years’ disclosures, click here.