The Office of the Superintendent of Financial Institutions (OSFI) released the final set of reporting templates for the Net Cumulative Cash Flow (NCCF). The published set of templates includes the Comprehensive NCCF for domestic systemically important banks and Category I Small and Medium-Sized Deposit-Taking Institutions or SMSBs, the Streamlined NCCF (for Category II SMSBs), and the Operating Cash Flow Statement (for Category III SMSBs). The Comprehensive NCCF is scheduled to transition to XML filing format from the current ".xlsx" filing format effective for the guideline’s implementation, starting April 01, 2023. The Streamlined NCCF will transition to XML filing the following year. OSFI released the reporting templates and instructions after the January 2022 revisions to the Liquidity Adequacy Requirements guideline. OSFI is also consulting on the draft NCCF reporting instructions, until March 31, 2022. Additionally, OSFI finalized and published two documents on the management of operational risk capital data for institutions required, or those applying, to use the Basel III standardized approach for operational risk capital in Canada.
The first published document sets out the data maintenance expectations for institutions using the standardized approach for operational risk capital data. In this document, OSFI outlines data management principles that OSFI expects institutions using the standardized approach for operational risk to adhere to. The term "data maintenance" includes various key elements of a data management process, including data collection, data processing, data aggregation, data reporting, data security, and data storage or retention. The second document presents the assessment tool on operational risk capital data. The document summarizes detailed expectations of OSFI based on the capital adequacy requirements guideline, the principles for effective risk data aggregation and risk reporting, and the data maintenance expectations.
Moreover, OSFI will rescind the existing governance and data maintenance implementation notes for Standardized Approach/Advanced Measurement Approach (TSA/AMA) institutions as well as the TSA and AMA Self-assessment Template, upon implementation of the revised Capital Adequacy Requirements guideline in 2023. The final version of the data maintenance expectations and the related assessment tool will replace the rescinded documents. This is because OSFI had reviewed the existing implementation notes and self-assessment templates for institutions using TSA/AMA in light of the new requirements for the Basel III standardized approach for operational risk. The review found that many of the qualifying requirements for TSA/AMA (for example, scenario analysis, external data, business environment, and internal control factors) are not part of the new standardized approach for operational risk, which uses internal operational loss data as a direct input as part of the capital charge calculation. Moreover, many of the operational risk management expectations found in the implementation notes have been updated and incorporated into other Basel standards as well as the OSFI guidance.
- NCCF Templates and Instructions
- Letter on Data Management Expectations
- Data Maintenance Expectations
- Assessment Tool for Operational Risk Data
Keywords: Americas, Canada, Banking, Liquidity Risk, NCCF, Reporting, SMSBs, Regulatory Capital, Basel, Standardized Approach, Operational Risk, OSFI, Subheadline
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