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

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469