Basel Committee Publications

This paper provides guidance on best practices for public disclosure of credit risk in banking institutions. The objective is to encourage banks to provide market participants and the public with the information they need to make meaningful assessments of a bank’s credit risk profile. Transparency in this area is particularly important since weak credit risk management practices and poor credit quality continue to be a dominant cause of bank failures and banking crises worldwide.

The issuance of this paper is a component of the Basel Committee’s ongoing efforts to promote adequate transparency and effective market discipline. As discussed in its report on Enhancing Bank Transparency, well-informed investors, depositors, creditors and other bank counterparties can provide a bank with strong incentives to maintain sound risk management systems and internal controls and to conduct its business in a manner that is both prudent and consistent with stated business objectives. Also, More