Transparency on the third Pillar of Basel

Abstract

An action like providing information to the Market seems a simple task, however after the outbreak of the financial crisis of 2007 in which we are still immersed, has demonstrated the importance of this action over the outbreak of the crisis. So the objective of this work is the study of bank risks. In particular, risks different from those of the Pillar I, due to banks do not provide as much information as they should do. Therefore, it has been studied the banking regulation that supports the third pillar of Basel, and the requirements required. Furthermore, it has been accomplish the analysis of each bank about the type of information that is presented to the market, in relation to the aforementioned risks. As a conclusion, it has been observed the qualitative way in which banks presents the information and the lack of legislation in material of these risks.