I am suggesting the need for increased focus on qualitative disclosure covering an institution’s governance and risk management practices and the challenges it faces. As regards timing, currently the law requires banks to report annually, but many report semi-annually on a voluntary basis.
There is a case to move to a quarterly cycle as obtains in advanced and emerging market economies and to have large institutions publicly explain their results to their shareholders and the investing public. Market discipline Of course increased disclosure is critical to fostering market discipline which plays an important role in ensuring proper risk management.