July 16, 2018

OSFI released a discussion paper titled on the implementation of the final Basel III reforms in Canada. The paper sets out the preliminary views of OSFI on the scope and timing of the domestic implementation of the final Basel III reforms, which BCBS published in December 2017. The proposals in the discussion paper apply to all deposit-taking institutions. OSFI invites stakeholder comments by October 19, 2018.

The paper includes a series of questions seeking feedback from stakeholders on specific issues, including where OSFI is proposing modifications to better fit the Canadian market. The final Basel III reforms will be used as a starting point, although modifications may be made to take into account the unique characteristics of the Canadian market. Key areas where OSFI is considering modifications to the final Basel III reforms include the treatment of residential mortgages, the treatment of credit cards, and the transition period for the capital floor. However, OSFI will propose future changes to the domestic capital framework to ensure requirements are reflective of the risks faced by institutions that do not use internal models for regulatory capital purposes. Industry feedback on these changes will be sought through a separate consultation process.

The final Basel III reforms include changes to the credit risk, operational risk, leverage ratio, and credit valuation adjustment frameworks as well as to the capital floor. Although the internationally agreed implementation dates for these changes are several years away, OSFI has already received questions from industry stakeholders. Hence, OSFI is starting the consultation process to allow for a more detailed dialog on implementation issues as well as to finalize guidance as early as possible.

 

Related Links

Comment Due Date: October 19, 2018

Keywords: Americas, Canada, Banking, Basel III, Final Basel III Reforms, Capital Framework, OSFI

Related Articles
News

APRA Releases Minor Changes to Reporting Standards on SA-CCR for Banks

APRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).

May 22, 2019 WebPage Regulatory News
News

APRA on Industry Self-Assessments into Governance and Accountability

APRA released an information paper analyzing the self-assessments performed by 36 of the country’s largest banks, insurers, and superannuation licensees in response to the final report on the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).

May 22, 2019 WebPage Regulatory News
News

APRA Proposes to Amend Guidance on Residential Mortgage Lending

APRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.

May 21, 2019 WebPage Regulatory News
News

IASB Proposes Improvements to IFRS 9 and IFRS 16

IASB published the exposure draft ED 2019/2 that proposes amendments to four IFRS standards, including IFRS 9 on Financial Instruments and IFRS 16 on Leases.

May 21, 2019 WebPage Regulatory News
News

ESAs Amend Technical Standards on Mapping of ECAIs Under CRR

ESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).

May 20, 2019 WebPage Regulatory News
News

OCC Consults on Information Collection for Home Mortgage Disclosures

OCC is soliciting comment on the revision of the information collection titled “Regulation C—Home Mortgage Disclosure.” OCC also notes that it has sent the collection to OMB for review.

May 20, 2019 WebPage Regulatory News
News

OCC Report Examines Key Risks for Federal Banking System

OCC published the Seminannual Risk Perspective for Spring 2019.

May 20, 2019 WebPage Regulatory News
News

ESMA Updates the List of Guidelines Under Its Mandate in May 2019

ESMA updated the overview of guidelines published under its mandate, with information and links to the related documents.

May 20, 2019 WebPage Regulatory News
News

EIOPA Updates Q&A on Regulations in May 2019

EIOPA published additional questions and answers (Q&A) on guidelines, directives, and regulations applicable to insurers in Europe.

May 17, 2019 WebPage Regulatory News
News

FSB Publishes Update on Meeting of RCG for Americas

FSB published a summary of the meeting of its Regional Consultative Group (RCG) in Americas.

May 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3108