The European Banking Authority (EBA) has published its final draft Implementing Technical Standards (ITS) amending the Pillar 3 disclosure framework. This update aligns rules with the Capital Requirements Regulation (CRR 3) and introduces new disclosure requirements for equity and shadow banking exposures.
A key focus of the update is simplification. The EBA is reducing reporting burdens across the board, cutting data points for large banks by 37%, medium banks by 17%, and Small and Non-Complex Institutions (SNCIs) by 84% compared to large firms. To further support SNCIs, the EBA will centrally pre-fill and disclose their ESG information in the Pillar 3 Data Hub using supervisory reporting data.
The new standards are fully aligned with the European Sustainability Reporting Standards (ESRS), allowing institutions to cross-reference information and eliminate duplicate reporting.
The draft ITS will now be submitted to the European Commission for adoption. The rules are expected to take effect on 31 December 2026, with a delayed implementation of 31 December 2027 for SNCIs.
