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

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News
    News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News
    News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News
    News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News
    News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521