The European Banking Authority has published the results of a targeted peer review of how selected competent authorities supervise compliance with Pillar 3 disclosure requirements under the Capital Requirements Regulation and the Bank Recovery and Resolution Directive. The review found that most authorities examined have fully or largely embedded Pillar 3 into their supervisory frameworks and that oversight is generally effective, but supervisory consistency across jurisdictions still needs to improve. The assessment covered France's Prudential Supervision and Resolution Authority, Bank of Italy, Polish Financial Supervision Authority, Banco de Portugal, Swedish Financial Supervisory Authority and the European Central Bank's Single Supervisory Mechanism over the period from 1 June 2023 to 30 June 2025. It examined four areas: integration of Pillar 3 into supervisory manuals and planning, arrangements for reviewing disclosures and related governance, processes for assessing disclosures, and follow-up and enforcement. Bank of Italy and Banco de Portugal were rated fully applied across all four benchmarks, while the Polish Financial Supervision Authority was rated partially applied throughout and the Swedish Financial Supervisory Authority received mostly not applied ratings because it lacks formal methodologies and does not generally treat Pillar 3 non-compliance as a significant financial stability risk. The European Central Bank was largely applied on several benchmarks, reflecting its more selective, risk-based review approach. The report sets out general recommendations for all competent authorities to strengthen documentation, maintain updated lists of in-scope institutions, integrate Pillar 3 assessment into the supervisory review and evaluation process, and standardise communication and remediation processes. The European Banking Authority said it will conduct a follow-up peer review in two years to assess implementation of the measures in the report.
European Banking Authority2026-07-02
European Banking Authority peer review finds strong Pillar 3 supervisory frameworks but uneven practices across jurisdictions
The European Banking Authority's peer review found that most reviewed supervisors have broadly effective Pillar 3 disclosure oversight, but practices remain uneven across jurisdictions. Bank of Italy and Banco de Portugal were fully applied across all benchmarks, while weaknesses were concentrated at the Polish Financial Supervision Authority and the Swedish Financial Supervisory Authority. The European Banking Authority will review implementation of its recommendations in two years.