Featured Product

    OSFI Revises Guideline on Principles for Management of Liquidity Risk

    December 05, 2019

    OSFI finalized Guideline B-6 on the principles for the management of liquidity risk. The guideline sets out the OSFI expectations about the management of liquidity risk for banks, bank holding companies, and federally regulated trust and loan companies. Guideline B-6, which was last updated in 2012, describes some of the elements that will be considered by supervisors in assessing the strength of the liquidity risk management framework of an institution and describes some of the information that will be used to assess liquidity adequacy, as appropriate to the scale, complexity, and function of the institution. The final guideline will take effect on January 01, 2020.

    Along with the Liquidity Adequacy Requirements (LAR) Guideline, which outlines a set of quantitative liquidity standards and metrics, Guideline B-6 forms the framework under which OSFI assesses the liquidity adequacy of the institutions it supervises. The revisions aim to ensure that the guideline remains current and relevant as well as appropriate for the scale and complexity of institutions. As a result of the supervisory assessments of OSFI, the updated guidance includes additional clarity on the expectations of OSFI regarding the liquidity risk management practices of institutions. The revisions also relate to the new liquidity risk measurement tools that have been introduced in the LAR Guideline in recent years—such as the Liquidity Coverage Ratio, the Net Stable Funding Ratio minimum standards, and the Net Cumulative Cash Flow metric—and were not earlier referenced in Guideline B-6. The appendix provides a summary of comments received from the public consultation and outlines the OSFI responses to these comments. The objective of the revised Guideline B-6 is to ensure that the expectations contained in the guideline for managing liquidity risk at institutions remain sound and current as well as appropriate for the scale and complexity of institutions.

     

    Related Links

    Effective Date: January 01, 2020

    Keywords: Americas, Canada, Liquidity Risk, Guideline, Liquidity Principles, Basel III, OSFI

    Featured Experts
    Related Articles
    News

    ECB Allows Temporary Relief in Leverage Ratio Amid COVID-19 Pandemic

    ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.

    September 21, 2020 WebPage Regulatory News
    News

    ESAs Launch Survey on Templates for Product Disclosures Under SFDR

    ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).

    September 21, 2020 WebPage Regulatory News
    News

    ECB Proposes Integrated Reporting Framework to Reduce Burden for Banks

    ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.

    September 21, 2020 WebPage Regulatory News
    News

    ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks

    ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.

    September 18, 2020 WebPage Regulatory News
    News

    EBA Provides Opinion on Definition of Credit Institution in CRR

    EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).

    September 18, 2020 WebPage Regulatory News
    News

    APRA Consults on Alignment of Daily Liquidity Report for Banks

    APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.

    September 17, 2020 WebPage Regulatory News
    News

    FED Releases Scenarios for Second Round of Stress Tests on Banks

    FED released hypothetical scenarios for a second round of stress tests for banks.

    September 17, 2020 WebPage Regulatory News
    News

    FED to Temporarily Revise FR Y-14 Reports to Conduct Stressed Analysis

    FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.

    September 17, 2020 WebPage Regulatory News
    News

    FED Revises Information Collection Under Market Risk Capital Rule

    FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).

    September 17, 2020 WebPage Regulatory News
    News

    EBA Seeks Input on ESG Disclosure Practices of Banks

    EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.

    September 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5809