Disclosure regulation plays a crucial role in ensuring the stability and proper functioning of banking markets. In response to the 2007–2008 financial crisis, regulators introduced stricter disclosure requirements to improve transparency, believing that insufficient disclosure was a key factor in the crisis. To prevent financial instability, policymakers mandate various disclosure requirements, such as banking rules (e.g. Basel), accounting standards (e.g., IFRS) and compliance rules from entities like central banks and international organizations. However, recent bank failures, such as Silicon Valley Bank and Credit Suisse in 2023, have shown that even robust disclosure regulations cannot prevent all financial crises. These failures highlight the ongoing need for better risk disclosures to more accurately assess a bank's financial health. Disclosure regulations aim to strengthen the information environment, reduce uncertainty, and improve decision-making. Under a mandatory disclosure regime, banks are compelled to disclose more information than in voluntary settings, which can increase market transparency. While disclosure regulations help mitigate information asymmetry and agency conflicts, they must be carefully designed and regularly enforced to be effective. Advances in banking technology have also reduced information costs, facilitating more accessible and comprehensive disclosures. However, these regulations alone do not guarantee the prevention of future crises or frauds.