Featured Product

    OSFI Revises Implementation Timeline for the FRTB Rules

    July 20, 2017

    OSFI revised the timeline for implementation of the minimum capital requirements for market risk in Canada. The minimum capital requirements for market risk are also known as the Fundamental Review of the Trading Book (FRTB) rules and were agreed to by the Basel Committee countries in January 2016. OSFI is advising the Canadian deposit-taking institutions that the first regulatory reporting under the FRTB rules will commence no earlier than in the first quarter of 2021. In the interim, OSFI expects institutions currently subject to market risk capital rules to develop internal strategic plans to implement FRTB.

    OSFI is extending the domestic implementation of these rules, as there are a series of implementation complexities associated both with the text language of rules as well as with the IT system changes required by institutions to comply with these rules. It is not clear whether implementation of these requirements by the majority of key competitors in foreign markets will be done by the stated Basel implementation date. Under the Basel Committee’s timetable, national supervisors are expected to finalize their domestic FRTB rules by January 2019 and to start new regulatory reporting as at end-December 2019 (or, for Canadian banks, fiscal quarter 1, 2020). In its letter, OSFI reiterated that it remains committed to implementing the FRTB standards in its Capital Adequacy Requirements (CAR) Guideline. The FRTB rules represent an important improvement in the overall design and coherence of the capital standard for market risk and ensure the delivery of credible capital outcomes.

     

    Related Links

    Letter (PDF)

    CAR Guideline 2017

    Keywords: Americas, Canada, Banking, FRTB, CAR, Basel III, OSFI

    Featured Experts
    Related Articles
    News

    US Agencies Requests Comments on Use and Impact of CAMELS Ratings

    US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS).

    October 18, 2019 WebPage Regulatory News
    News

    BoE Announces Date for Publication of Stress Test Results for Banks

    BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019.

    October 18, 2019 WebPage Regulatory News
    News

    CPMI Report Examines Impact of Global Stablecoins

    This report by the G7 Working Group on Stablecoins finds that stablecoins, regardless of size, have implications ranging from anti-money laundering efforts across jurisdictions to operational resilience (including for cyber security), consumer or investor and data protection, and tax compliance.

    October 18, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years

    US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102).

    October 17, 2019 WebPage Regulatory News
    News

    ECB Publishes Recommendations on Euro Risk-Free Rates Transition

    ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates.

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4002