The European Banking Authority (EBA) has found high overall compliance with Pillar 3 disclosure requirements but identified room for improvement in consistency across institutions, according to a targeted peer review published on 2 July 2026. The review assessed how banks report key prudential information under the EU's Capital Requirements Regulation (CRR), which aims to enhance market discipline through transparency.
The EBA's peer review examined a sample of banks across the EU and concluded that while most institutions meet the formal disclosure obligations, the format and level of detail vary significantly, potentially undermining comparability for investors and analysts. The authority called for greater harmonisation in the presentation of risk-weighted assets, capital ratios, and leverage exposures.
This is the first time the EBA has conducted a targeted peer review focused exclusively on Pillar 3 disclosures since the CRR's latest amendments took effect. The review did not identify any systemic shortcomings but flagged that some banks provide overly aggregated data or omit breakdowns that the regulation expects. The EBA recommended that national competent authorities encourage more granular and standardised reporting.
The findings carry implications for EU banks, which may face pressure to refine their disclosure practices to align with the EBA's expectations, potentially increasing compliance costs. For investors and analysts, greater consistency could improve the ability to compare risk profiles across institutions. National regulators will be expected to follow up with individual banks where gaps were identified. The EBA did not set a deadline for implementing the recommendations but indicated it would monitor progress through its regular supervisory dialogue.