APRA Basel II Pillar 3 disclosures
The Basel II Capital Accord principles took effect in Australia on 1 January 2008. The framework for the application of Basel II in Australia is comprised of three pillars:
- Pillar 1: More sophisticated calculation of minimum capital requirements;
- Pillar 2: Institutions’ own assessments of their capital adequacy and enhanced supervision of capital management; and
- Pillar 3: Materially increased disclosure requirements.
The Bank of Queensland Limited Group (“the Group”) commenced reporting its regulatory disclosures to APRA under the requirements of Pillar 1 from January 2008 using the Standardised approach. The Group has also implemented the Pillar 2 regime including documentation of its Internal Capital Adequacy Assessment Process (“ICAAP”) and increased management supervisory review and assessment.
The Pillar 3 requirements mandated by APRA prudential standard APS 330, ‘Capital Adequacy: Public Disclosure of Prudential Information’, involve the disclosure of regulatory capital structure, capital adequacy and credit risk information.
Bank of Queensland will be updating components of its Pillar 3 disclosures on a quarterly basis, with additional disclosures provided on a semi-annual basis in alignment with the Group’s annual and half year reporting periods.