The Office of the Superintendent of Financial Institutions (OSFI) launched a consultation on the draft Pillar 3 Disclosure Guideline for Canadian small and medium-size banks or SMSBs. The draft guideline lists the disclosures required by small and medium-size banks and their respective implementation dates. OSFI proposes to implement these requirements proportionally and plans to include the detailed tables and templates in the final guideline. The mandatory effective date for most disclosure tables and templates is expected to be sometime in 2023. The feedback period on the draft guideline ends on September 29, 2021, with the effective date for the finalized guideline expected to be November 01, 2022.
The draft guideline contains updated disclosure expectations and is intended to serve as a comprehensive source for Pillar 3 disclosure requirements for small and medium-size banks. The guideline presents five guiding principles for Pillar 3 disclosures by small and medium-size banks and specifies Basel-related disclosure requirements. OSFI proposes to implement a proportional set of Pillar 3 disclosure requirements for small and medium-size banks:
- Category 1 (banks with >$10 billion in total assets): Internal ratings-based or IRB-approved small and medium-size banks will be required to disclose up to 30 tables/templates.
- Category 1: Non-IRB-approved small and medium-size banks will be required to disclose up to 22 tables/templates.
- Category 2 (banks with <$10 billion in total assets, if report >$100 million in loans): Small and medium-size banks will be required to disclose five tables/templates.
- Category 3 (banks with <$10 billion in total assets, if report <$100 million in loans): Small and medium-size banks will be required to disclose three tables/templates.
Annex 1 to the draft guideline presents minimum mandatory disclosure requirements for small and medium-size banks by format, reporting frequency, and implementation date for each category the small and medium-size banks fall into. The proposed guideline will apply to all small and medium-size banks, except for foreign bank branches, and subsidiaries of small and medium-size banks or domestic systemically important banks (D-SIBs) that report consolidated results to OSFI. Small and medium-size bank category covers banks (including federal credit unions), bank holding companies, federally regulated trust companies, and federally regulated loan companies that have not been designated by OSFI as D-SIBs. This includes subsidiaries of small and medium-size banks or D-SIBs that are banks (including federal credit unions), federally regulated trust companies, or federally regulated loan companies.
Comment Due Date: September 29, 2021
Keywords: Americas, Canada, Banking, Pillar 3, Reporting, Basel, Disclosures, Proportionality, SMSBs, D-SIBs, Small and Medium Size Banks, OSFI
Previous ArticleSRB Outlines Upcoming Work Priorities, Issues MREL Dashboard
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
The Federal Financial Supervisory Authority of Germany (BaFin) proposed to amend the “Capital Investment Conduct And Organization Ordinance” and issued a draft circular on the minimum resolvability requirements for resolution planning.
The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022.
The Financial Services Authority of Indonesia (OJK) is strengthening cooperation with the Australian Prudential Regulation Authority (APRA) and the Japanese Financial Services Agency (JFSA)
The European Parliament and the Council published Regulation 2022/868 on European data governance (Data Governance Act).
The European Banking Authority (EBA) published phase 2 of its reporting framework 3.2. The technical package supports the implementation of the updated reporting framework by providing standard specifications