OSFI revised the implementation timeline for net stable funding ratio (NSFR) for deposit-taking institutions in Canada to January 2020. Earlier, in March 2017, OSFI had extended the implementation timeline to January 2019. The revised timeline reflects the to date implementation progress at the international level.
OSFI remains committed to implementing the NSFR standard in its Liquidity Adequacy Requirements (LAR) guideline. Once in force, the NSFR rules will play an important role in determining the liquidity adequacy of financial institutions. Relevant areas of the LAR Guideline have been updated to reflect the domestic NSFR implementation delay. Until OSFI begins its public consultation process on the NSFR rules and issues a draft guideline for comment, the LAR Guideline will continue to contain placeholder text reflecting the commitment of OSFI to implement the NSFR standard in Canada.
Keywords: Americas, Canada, Banking, Basel III, LAR, NSFR, OSFI