As part of the adoption of the "New Basel Capital Accord, Basel II" and in order to strengthen market discipline, the Circular no. 263 (and following amendments) issued by the Bank of Italy on 27th December 2006 requires financial intermediaries to disclose certain information relating to their capital adequacy, risk exposure and characteristics of systems used to identify, measure and manage such risks (Pillar 3 - Third Pillar of Basel 2).
Since 1st January 2014, the new prudential legislation on banks and investment firms included in the EU Regulation no. 575/2013, Capital Requirements Regulation, CRR and in the Capital Requirements Directive 2013/36/EU, CRD IV has entered into force, transposing to the European Union the standards set out by the Basel Committee on banking supervision (Basel 3 Framework).
On 17th December 2013, the Bank of Italy issued the Circular no. 285 "Supervisory Provisions for Banks", which regulates the implementation of the new Community legislation in Italy.
The above-mentioned Circular does not set specific standards for the publication and preparation of Pillar 3 - as it did in the past - but it only list the provisions laid down in the CRR.
The topic is therefore regulated by:
- the CRR, Section 8 "Disclosure by institutions" art. 431 - 455) and Section 10, Title 1, Chapter 3 "Transitional provisions with regard to own funds" (art. 492);
- European Commission Regulations, prepared by the European Banking Authority on regulatory and implementing technical standards to set uniform templates for the purposes of disclosure of different types of information.
As far as the Banca Carige Group is concerned, the Parent Company Banca Carige meets the disclosure requirement at a consolidated level, preparing the documents complying with the aforementioned regulations, with reference to the prudential regulatory consolidation area, which coincide with the definition of banking group supervision.