Third Pillar of Basel 2 – Pillar 3

From the beginning of 2007 the new Capital Requirements Directive (CRD), acknowledged by the Bank of Italy with its circular letter n. 263/2006, is effective as the common framework for implementing the Basel 2 regulations in EU.

In the CRD it is also stipulated that institutions should disclose capital and risk management under Pillar 3 rules.
Specifically, Pillar III presents a set of disclosure requirements that should improve market participants' ability to assess banks' capital structures, risk exposures, risk management processes and, hence, their overall capital adequacy.