OSFI Updates Address Liquidity Risk Reporting & Operational Risk Data
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 The final version of the data maintenance expectations and the related assessment tool will replace the rescinded documents.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.
Related Links
- 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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
EBA Updates Methodology to Assess Third-Country EquivalenceRelated Articles
EBA Sets Out Roadmap for 2023, Updates Reporting Framework 3.2
The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.
FED Announces Launch of Climate Scenario Analysis Exercise in 2023
The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.
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.
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).
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.
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."
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.
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.
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.
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).
