HSBC today welcomes the publication of the Enhanced Disclosure Task Force ('EDTF') report Enhancing the Risk Disclosures of Banks.
HSBC, which actively participated in the creation of the report, recognises that the ultimate success of this important work will be judged by the extent and pace of steps taken proactively by the largest international banks to enhance their risk disclosures through implementing its recommendations, and is committed to making significant progress in 2012 and continuing beyond.
Commenting on the report, Douglas Flint, Group Chairman of HSBC, said: "Rebuilding investors' confidence and trust in the banking industry is vital and responding to demands for greater transparency and better risk disclosures is an important step towards achieving that goal. The report focuses on areas where investors have highlighted their need for better and more transparent information about banks' risks and how these relate to performance measurement and reporting, both areas where banks agree that improvements can be made. The recommendations are comprehensive and timely - particularly with regard to liquidity and risk-weighted assets disclosures - and their implementation will greatly assist in improving understanding of banking models and their inherent risks."
The EDTF report was produced by a unique collaboration between users and preparers of financial reports following significant discussion, deliberation and debate resulting in proposals to enhance existing disclosures to the benefit of users of financial reports, as well as signposting the direction for future enhancements.
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Notes to editors:
The EDTF report, Enhancing the Risk Disclosures of Banks, can be found here.
The report includes an Appendix B with examples of recommended disclosures. Due to the large size of the computer file for the appendix (12 megabytes), the EDTF report without Appendix B can alternatively be downloaded here and Appendix B of examples can be found separately here.
The EDTF was co-chaired by the Chairman of the Supervisory Board of Eurex Group; the Group Chief Accounting Officer of HSBC Holdings plc; and the Global Head of Credit Research Group at PIMCO.
The EDTF was formed in May 2012 at the initiative of the Financial Stability Board (FSB). As requested by the FSB, the EDTF maintained extensive outreach with regulatory and standard setting bodies and with industry groups at key stages as it developed its report.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,900 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and North Africa. With assets of US$2,652bn at 30 June 2012, the HSBC Group is one of the world's largest banking and financial services organisations.
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