OSFI welcomed the announcement that the final pieces of the Basel III reforms have been endorsed by the Group of Central Bank Governors and Heads of Supervision, the committee that oversees the BCBS. The announcement followed a meeting in Frankfurt, Germany, and caps an important period in the regulatory response to the financial crisis.
OSFI will launch a public consultation on the domestic implementation of the Basel III reforms in spring 2018. The consultation will focus on potential modifications required for the Canadian context and on the implementation timelines. "Canada is pleased to be part of today’s agreement,” said Jeremy Rudin, Superintendent of Financial Institutions. “The completion of the Basel III reforms is an important step in ensuring a global capital regime for banks that is credible and that enhances confidence in the banking sector."
The Basel III reforms have been introduced through a series of regulatory changes in recent years, designed to address weaknesses in banks’ resiliency that were revealed during the financial crisis. Previous changes were designed to deal with the quantity and quality of bank capital and liquidity. This final set of reforms is aimed at improving the risk sensitivity of capital standards and will increase the transparency and consistency in the way banks measure and report their exposure to various risks, along with the capital held against those risks.
Keywords: Americas, Canada, Banking, Basel III, Final Basel III Reforms, Capital Framework, OSFI
Previous ArticlePRA Published PS21/17 and SS46/15 Related to UK Leverage Ratio
Next ArticleESMA Publishes its Work Program for 2018
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.