Pillar 3 disclosures in SAP Analytics Cloud: structuring the regulatory templates

Pillar 3 disclosures are the public face of a bank's capital adequacy — the tables and narrative that regulators require institutions to publish so that market participants can assess their risk profile. Producing them in SAP Analytics Cloud rather than in spreadsheets gives finance and risk teams a governed, auditable process where the figures trace directly back to the calculation engine, and where the same data that feeds internal reporting also feeds the public disclosure. This guide explains what Pillar 3 covers, how to structure the model in SAC, and where it connects to your Basel III work.

What Pillar 3 actually requires

Pillar 3 is the third pillar of the Basel framework (alongside Pillar 1 minimum capital requirements and Pillar 2 supervisory review). It mandates that banks publicly disclose — typically quarterly or semi-annually — a standardized set of tables covering: capital composition (Common Equity Tier 1, Additional Tier 1, Tier 2 and deductions), risk-weighted assets (RWA) by risk type (credit, market, operational), capital ratios (CET1 ratio, Total Capital ratio, Leverage ratio), liquidity metrics (LCR, NSFR), and credit quality (non-performing exposures, provisions, forbearance). The EBA publishes the precise table formats and definitions — COREP templates are the standard in the EU.

How SAC supports the disclosure process

The core advantage of SAC for Pillar 3 is the connection between calculation and disclosure. Capital ratios computed in the planning model (CET1 capital divided by total RWA) feed directly into the disclosure tables without re-entry — eliminating the copy-paste error that is the principal audit risk in spreadsheet-based processes. Version control in SAC means the figures published in a given quarter are locked and traceable. And because SAC Stories can export to PDF or be embedded in the annual report workflow, the last mile of the disclosure process is integrated rather than manual.

Structuring the Pillar 3 model

A Pillar 3 model in SAC typically shares its core dimensions with the broader Basel III capital model: Entity (legal entity and consolidation level), Risk type (credit, market, operational, CVA), Exposure class (for credit risk RWA), Version (Actual, Restated, Prior period for comparative disclosures), and Period. The disclosure tables are then Stories or analytic applications that read from this model, formatted to match the regulatory template. A separate Narrative layer — text inputs in SAC or connected to a document management tool — captures the qualitative disclosures that accompany the quantitative tables.

The link to Basel III and BCBS 239

Pillar 3 disclosures are downstream of the Basel III capital calculation — you cannot produce accurate Pillar 3 tables without an accurate CET1, LCR and NSFR calculation upstream. Our Basel III in SAC guide covers that calculation in detail. And the data quality and aggregation governance that BCBS 239 requires — see BCBS 239 in SAC — is what makes the Pillar 3 figures auditable and defensible to the regulator.

Where to start

Our banking regulatory reporting template provides the capital structure, RWA dimensions and key ratios pre-built, giving you a structured starting point for the full Pillar 3 workflow. You configure and validate the figures — the template eliminates the blank-sheet setup. Not sure which template fits your regulatory scope? Let the assistant recommend one.