Pillar 3

Pillar 3 refers to a regulatory framework requirement that financial institutions disclose their risk exposures, capital adequacy, and risk management practices to the public. Its purpose is to promote transparency, allowing investors, regulators, and other stakeholders to better understand how banks and financial firms handle risks, ensuring they have enough capital to withstand financial shocks. This transparency helps foster trust, supports market discipline, and encourages sound risk management across the financial industry.