General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
August 21, 2017

OSFI is consulting on revisions to the Capital Adequacy Requirements (CAR) Guideline for implementation in the first quarter of 2018. Implementation is November 01, 2017 for institutions with an October 31 year-end and January 01, 2018 for institutions with a December 31 year-end. The revisions mainly relate to the treatment of allowances as a result of the expected adoption of IFRS 9 by deposit-taking institutions in 2018. To inform OSFI’s decision on the need for a transition (or phase-in) of the impact of IFRS 9, institutions that expect IFRS 9 to have a material impact on their capital position are requested to provide information on estimated impacts to OSFI during this consultation. Comments are due by September 29, 2017.

In addition to the changes related to IFRS 9 implementation, OSFI also provides clarifications throughout the CAR Guideline in response to questions received from the industry as part of the regular housekeeping process. With respect to the domestic implementation of the Standardized Approach to Counterparty Credit Risk (SA-CCR) and the revisions to the capital requirements for bank exposures to central counterparties, OSFI has chosen to extend the implementation timeline of these requirements, given that the timing for implementation of these rules by the majority of key competitors in foreign markets is more likely to occur after January 2018. However, OSFI will require institutions to start reporting amounts under SA-CCR beginning in the first quarter of 2018. OSFI intends to implement these rules in the first quarter of 2019, subject to confirming the implementation readiness of key foreign market counterparties during 2018. This information will be collected as part of the BCAR regulatory return through the introduction of an additional schedule.

 

Furthermore, OSFI announced that it expects to implement the securitization framework, which was released by BCBS in July 2016, in the first quarter of 2019. This extended timeline will allow to reflect the treatment related to simple, transparent, and comparable (STC) criteria for short-term securitization exposures, which is yet to be finalized by BCBS. Thus, the existing securitization treatment specified in the CAR Guideline will remain in place through the end of the 2018 fiscal year. 

 

Related Links

Guideline

Guideline Impact Analysis Statement

Comment Due Date: September 29, 2017

Keywords: Americas, Canada, Banking, IFRS 9, CAR, SA CCR, STC Securitization, Guideline A, OSFI

Related Insights
News

IAIS Publishes Drafts of Revised ICP 8, ICP 15, ICP 16, and ICP 20

IAIS published the drafts of revised Insurance Core Principles on Public Disclosure (ICP 20), Investments (ICP 15), Enterprise Risk Management for Solvency Purposes (ICP 16), and Risk Management and Internal Controls (ICP 8), along with a revised draft of the glossary on enterprise risk management (ERM).

November 14, 2018 WebPage Regulatory News
News

MAS Amends Notice 637 on Capital Adequacy Requirements in Singapore

MAS published the final, revised Notice 637 on the risk-based capital adequacy requirements in Singapore.

November 13, 2018 WebPage Regulatory News
News

ESMA Updates Q&A on Implementation of CSD Regulation and MAR

ESMA updated questions and answers (Q&A) documents on the implementation of the Central Securities Depository (CSD) Regulation and Market Abuse Regulation (MAR).

November 12, 2018 WebPage Regulatory News
News

FSB Finalizes and Publishes the Cyber Lexicon

FSB published a cyber lexicon, following the public consultation earlier this year.

November 12, 2018 WebPage Regulatory News
News

SRB Updates Liability Data Reporting Template for 2019

SRB published version 2.7.1 of the Liability Data Reporting (LDR) Template.

November 12, 2018 WebPage Regulatory News
News

ECB to Conduct Comprehensive Assessment of Six Bulgarian Banks

ECB will undertake a comprehensive assessment of six Bulgarian banks. The exercise, comprising an asset quality review and a stress test, follows Bulgaria’s submission of a request to establish close cooperation with ECB on July 18, 2018.

November 12, 2018 WebPage Regulatory News
News

IMF Publishes Reports on the 2018 Article IV Consultation with Chile

IMF published its staff report and selected issues report under the 2018 Article IV consultation with Chile.

November 09, 2018 WebPage Regulatory News
News

PRA Issues PS27/18 on Implementing the Extension of SM&CR to Insurers

PRA published the policy statement PS27/18, which provides feedback to responses to the consultation paper CP20/18, on implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers (Part 2).

November 09, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News
News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2204