OSFI Releases Guideline on Foreign Bank Branch Deposit Requirements
OSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement. This guideline addresses the expectations of OSFI with respect to the minimum deposit, to be held in trust, which authorized foreign banks must maintain in respect of their business in Canada. The updates ensure a more streamlined Guideline A-10 that better aligns with the Bank Act. The final version of the guideline takes effect on January 01, 2020.
OSFI issued the proposed revisions to the guideline for consultation in June 2019. A summary of material comments along with the OSFI responses has been posted with the final version. The key revisions include:
- Changing the title of the guideline to "Foreign Bank Branch Deposit Requirement" from "Capital Equivalency Deposit"
- Updating and simplifying the guideline to reflect current practices
- Changing the foreign bank branch deposit ratio calculation to exclude off-balance sheet liabilities and include accrued expenses
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Effective Date: January 01, 2020
Keywords: Americas, Canada, Banking, Foreign Bank Branches, Guideline A-10, Deposit Requirement, Deposit Ratio, OSFI
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