Pillar 3 Disclosure
Pillar 3 under the Basel II Framework
Disclosure requirements of Pillar 3 under the Basel II framework (“Pillar 3”) created by the Basel Committee on Banking Supervision (“BCBS”) mark the promotion of market discipline amongst banks by increasing transparency. Increased transparency allows for independent and timely scrutiny by stakeholders (i.e., investors, analysts, financial customers, and other market participants). In turn, the bank’s board of directors and senior management are aligned with the interests of stakeholders due to periodic monitoring. Furthermore, it encourages the strengthening of core business practices that mitigate the bank’s exposures to risks in addition to the level of capitalization. Stakeholders influence the behavior of the bank and discourage the bank’s decisionmakers from engaging in activities which may result in exposure to undue risk that undermine their interests.
The Pillar 3 disclosures also improve comparability and consistency of disclosures between banks. The use of a common framework will introduce the ability of market participants to engage in meaningful comparisons between banks.
Bessemer Trust Company (Cayman) Limited (“BTCAY”) is currently licensed and regulated by the Cayman Islands Monetary Authority and is subject to the disclosure requirements of Pillar 3.
Set forth below are the disclosure items under Pillar 3 and where the information pertinent to BTCAY can be found in this document. Please note that some items of disclosure are inapplicable and so noted.