PD-1.3.34

All banks must make the following disclosures for any equities held in the Banking Book:

(a) The general qualitative disclosure requirement (PD-1.3.21) with respect to equity risk, including:
•   Differentiation between holdings on which capital gains are expected and those taken under other objectives including for relationship and strategic reasons; and
•   Discussion of important policies covering the valuation and accounting of equity holdings in the banking book. This includes the accounting policies and valuation methodologies used, including key assumptions and practices affecting valuation as well as significant changes in these practices;
(b) The types and nature of investments, including the amount that can be classified as quoted on an active market or privately held;
(c) The cumulative realised gains (or losses) arising from sales or liquidations in the reporting period;
(d) Total unrealised gains and losses recognised in the balance sheet but not through the P&L;
(e) Any unrealised gains and losses included in Tier One and Tier Two capital; and
(f) Capital requirements broken down by appropriate equity groupings, consistent with the methodology, as well as the aggregate amounts and type of equity investments subject to any supervisory transition or grandfathering provisions regarding regulatory capital requirement.
Amended: April 2011
Amended October 2010
April 2008