Pillar 3 of APRA's supervision framework is to encourage market discipline through an information disclosure framework.Pillar 3 requires:

Question

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Pillar 3 of APRA's supervision framework requires quantitative disclosures for capital structure, capital adequacy and risk exposure. This means that financial institutions need to disclose specific information about their capital position and exposure to risks in a quantitative manner, rather than just providing qualitative information. This helps to encourage market discipline by providing investors and other stakeholders with transparent information about the financial institution's risk profile, which in turn can help them make better-informed decisions.

Pillar 3 of APRA's Supervision Framework Is to Encourage Market