Basel III - Pillar 3 Disclosures 31 December -2024 Table of Disclosures
Chapter | BCBS Reference | Disclosures | Page No. |
DIS20: Overview of risk management, key prudential metrics and RWA | KM1 | Key metrics (at consolidated group level) | 4 |
OVA | Bank risk management approach | 5 | |
OV1 | Overview of risk-weighted assets (RWA) | 10 | |
DIS25: Composition of capital and TLAC | CCA | Main features of regulatory capital instruments and of other total loss-absorbing capacity (TLAC) - eligible instruments | 12 |
CC1 | Composition of regulatory capital | 13 | |
CC2 | Reconciliation of regulatory capital to balance sheet | 16 | |
DIS26: Capital distribution constraints | CDC | Capital distribution constraints | 17 |
DIS30:Links between financial statement and regulatory exposure | LIA | Explanations of differences between accounting and regulatory exposure amount | 17 |
DIS31: Asset encumbrance | ENC | Asset encumbrance | 18 |
DIS 35: Remuneration | REMA | Remuneration policy | 19 |
REM1 | Remuneration awarded during financial year | 21 | |
REM2 | Special payments | 21 | |
REM3 | Deferred remuneration | 22 | |
DIS40: Credit risk | CRA | General qualitative information about credit risk | 23 |
CR1 | Credit quality of assets | 26 | |
CR2 | Changes in stock of defaulted loans and debt securities | 27 | |
CRB | Additional disclosure related to the credit quality of assets | 27 | |
CRC | Qualitative disclosure related to credit risk mitigation techniques | 28 | |
CR3 | Credit risk mitigation techniques - overview | 29 | |
CRD | Qualitative disclosure on banks' use of external credit ratings under the standardized approach for credit risk | 29 | |
CR4 | Standardized approach - Credit risk exposure and credit risk mitigation effects | 30 | |
CR5 | Standardized approach - Exposures by asset classes and risk weights | 31 | |
DIS42: Counterparty credit risk | CCRA | Qualitative disclosure related to CCR | 32 |
DIS51: Credit valuation adjustment risk | CVAA | General qualitative disclosure requirements related to CVA | 32 |
DIS50: Market risk | MRA | General qualitative disclosure requirements related to market risk | 33 |
MR3 | Market risk under the simplified standardized approach | 34 | |
DIS60: Operational risk | ORA | General qualitative information on a bank's operational risk framework | 35 |
OR1 | Historical losses | 38 |
Chapter | BCBS Reference | Disclosures | Page No. |
DIS70: Profit rate risk in the banking book | PRRBBA | Profit rate risk in the banking book (IRRBB) risk management objective and policies | 40 |
PRRBB1 | Quantitative information on PRRBB | 41 | |
DIS80: Leverage ratio | LR2 | Leverage ratio common disclosure template | 43 |
DIS85: Liquidity | LIQA | Liquidity risk management | 45 |
LIQ1 | Liquidity coverage ratio (LCR) | 46 | |
LIQ2 | Net stable funding ratio (NSFR) | 47 |
The Qatar Central Bank (QCB) supervises Dukhan Bank (the Bank) and its subsidiaries (together referred to as the "Group") on a consolidated basis, and therefore receives information on the capital adequacy of, and sets capital requirements for, the Group as a whole. The capital requirements are computed at a Group level using the Basel III framework as laid out in QCB circular 3/2014 dated 06/01/ 2014. The Basel framework is structured around three 'pillars', with the Pillar 1 minimum capital requirements and Pillar 2 supervisory review process complemented by Pillar 3 market discipline. These disclosures are in line with the requirements of Pillar 3 under Basel Framework and is required by QCB bide circular 6/2022 dates 08/01/2022.
Pillar 3 Disclosure December 2024Pillar 3 disclosures complement the minimum capital requirements and the supervisory review process. Its aim is to encourage market discipline by developing disclosure requirements which allow market participants to assess specified information on the scope of application of Basel III, capital, particular risk exposures and risk assessment processes, and hence the capital adequacy of the Group. Disclosures consist of both qualitative and quantitative information and are provided at the consolidated level. The disclosures presented as part of this document is in line with disclosure template provided by Basel Committee of Banking Supervision in DIS 10 dates 11/11/2021 and QCB circular 6/2022 dated 08/01/2022. The figures mentioned in the disclosures are in QAR Mn.
The QCB issued Basel III capital regulations in 2014 introducing minimum capital requirements at three levels, namely Common Equity Tier 1 (CET1), Additional Tier 1 (AT1) and Total Capital. Additional capital buffers (Capital Conservation Buffer - 2.5%) introduced are over and above the minimum CET1 requirement of 6%. In November 2022 QCB published revised capital guidelines mainly focused on updates on Pillar 1 capital requirements introduced Basel III - Reforms with January 2024 as timeline for adaption.
DIS20: Overview of risk management, key prudential metrics and RWA KM1: Key Metrics (at consolidated group level)Dec-24 | Jun-24 | Dec-23 | ||
Available capital (amounts) | ||||
1 | Common Equity Tier 1 (CET1) | 11,784 | 11,659 | 11,213 |
1a | Fully loaded ECL accounting model | - | - | 0 |
2 | Tier 1 | 13,605 | 13,479 | 13,034 |
2a | Fully loaded ECL accounting model Tier 1 | - | - | 0 |
3 | Total capital | 14,375 | 14,191 | 13,800 |
3a | Fully loaded ECL accounting model total capital | - | - | |
Risk-weighted assets (amounts) | ||||
4 | Total risk-weighted assets (RWA) | 82,942 | 79,806 | 80,139 |
Risk-based capital ratios as a percentage of RWA | ||||
5 | Common Equity Tier 1 ratio (%) | 14.21% | 14.61% | 13.99% |
5a | Fully loaded ECL accounting model CET1 (%) | |||
6 | Tier 1 ratio (%) | 16.40% | 16.89% | 16.26% |
6a | Fully loaded ECL accounting model Tier 1 ratio (%) | |||
7 | Total capital ratio (%) | 17.33% | 17.78% | 17.22% |
7a | Fully loaded ECL accounting model total capital ratio (%) | |||
Additional CET1 buffer requirements as a percentage of RWA | ||||
8 | Capital conservation buffer requirement (2.5% from 2019) (%) | 2.50% | 2.50% | 2.50% |
9 | Countercyclical buffer requirement (%) | 0.00% | 0.00% | 0.00% |
10 | Bank D-SIB additional requirements (%) | 0.50% | 0.50% | 0.50% |
11 | Total of bank CET1 specific buffer requirements (%) | 3.00% | 3.00% | 3.00% |
(row 8 + row 9+ row 10) | ||||
12 | CET1 available after meeting the bank's minimum | 5.21% | 5.61% | 4.99% |
capital requirements (%) | ||||
Leverage Ratio | ||||
13 | Total leverage ratio measure | 132,399 | 127,314 | 127,055 |
14 | Leverage ratio (%) (row 2/row 13) | 10.28% | 10.59% | 10.26% |
14a | Fully loaded ECL accounting model leverage ratio (%) | 10.28% | 10.59% | 10.26% |
Liquidity Coverage Ratio | ||||
15 | Total HQLA | 19,694 | 16,847 | 19,642 |
16 | Total net cash outflow | 11,770 | 12,817 | 19,708 |
17 | LCR ratio (%) | 167.3% | 131.4% | 99.7% |
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