The disclosure requirements should focus on the key aspects of a bank’s financial performance and risk profile, and should be made with sufficient frequency and timeliness as to provide the market with a meaningful basis for assessing a bank’s financial condition and comparing one bank with another.
Disclosure is likely to be more meaningful and effective if it is supported by robust accounting standards which have the force of law. Certainly, in the case of New Zealand, we have found that our disclosure regime has been assisted greatly by the introduction of legally binding and more rigorously drafted accounting standards.