Index and Pillar 3: Difference between pages

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1.  
''Banking - regulation''.


A number showing the variation in price of a group of securities with respect to a chosen base period.
(P3).


Indices may be calculated as arithmetical or geometric averages and individual components may be weighted, for example by market capitalisation.
Pillar 3 is the element of banking supervision which engages with 'market discipline'.


For example the FTSE 100 or the S&P 500.


Banks are required to make enhanced qualitative and quantitative disclosures of how they calculate their regulatory capital ratios, and to provide reconciliations to their reported accounting information.


2.  
The idea is that those following better practice will enjoy lower-cost funding from the market, thereby encouraging best practice over time, via the market mechanism.


A comparable measure in relation to any set of data.


For example, inflation indices.
== See also ==
* [[Bank supervision]]
* [[Basel III]]
* [[Capital adequacy]]
* [[EDTF]]
* [[Market mechanism]]
* [[Pillar 1]]
* [[Pillar 2]]


 
[[Category:Accounting,_tax_and_regulation]]
== See also ==
[[Category:The_business_context]]
* [[Composite indices]]
* [[Equity swap]]
* [[Exchange-traded funds]]
* [[FTSE 100]]
* [[Herfindahl index]]
* [[Index tracker]]
* [[MSCI]]
* [[S&P 500]]
* [[Statistics]]
* [[Tracker fund]]

Latest revision as of 18:53, 29 June 2022

Banking - regulation.

(P3).

Pillar 3 is the element of banking supervision which engages with 'market discipline'.


Banks are required to make enhanced qualitative and quantitative disclosures of how they calculate their regulatory capital ratios, and to provide reconciliations to their reported accounting information.

The idea is that those following better practice will enjoy lower-cost funding from the market, thereby encouraging best practice over time, via the market mechanism.


See also