OSFI Proposes Revisions to Disclosures for G-SIB Identification

BCBS had issued, in July 2018, an updated assessment methodology that is used annually by BCBS and FSB to identify G-SIBs. The updated assessment methodology included revised requirements for annual public disclosure of selected data captured within the assessment methodology. This Advisory updates the implementation of this disclosure requirement on G-SIB indicators in Canada. The disclosure requirement is based on the status of each bank in accordance with the annual G-SIB identification exercise, which includes:

• Disclosure requirement for banks that meet the criterion for public disclosure of data, but that have not been identified as a G-SIB by FSB in the previous financial year. These banks are required to publicly disclose, at a minimum, the Canadian-dollar denominated values of the 13 indicators comprising the G-SIB assessment methodology, using the reporting template.
• Disclosure requirement for banks that have been identified as G-SIBs by FSB in the previous financial year. In addition to the existing reporting template, these banks are required to publicly disclose the CAD denominated values of all line items in the detailed data template used by BCBS and FSB for the annual G-SIB identification exercise. The BCBS template provides the full calculation of each of the 13 indicators captured in the existing reporting template. 

Additionally, whether required to publicly disclose data, banks should include any additional information deemed useful to facilitate understanding of the data, including how it should be interpreted within the context of the assessment methodology used by BCBS and FSB in the annual identification of G-SIBs. Banks should indicate the financial year-end date of the information reported and the date of first public disclosure. Regarding narrative commentary, all banks should provide discussion of the main drivers behind any material change in one or more of the 13 indicator values compared to the prior year and explain any relevant qualitative characteristic deemed necessary for understanding the quantitative data.

A bank may choose to disclose required information of this Advisory within its published Pillar 3 report, or within its report to shareholders. If a bank chooses to disclose the required information in the report to shareholders, it must be clearly indicated in the bank’s Pillar 3 report. Regardless of whether the disclosure of required information is included in the annual Pillar 3 report, a bank's annual Pillar 3 report and all the interim Pillar 3 reports should include a reference to the website where current and previous disclosures of required information can be found. This Advisory applies to federally regulated banks with a Basel III leverage ratio exposure measure (including exposures arising from insurance subsidiaries) exceeding EUR 200 billion at financial year-end, or to any bank that was included in the assessment sample by OSFI based on supervisory judgment.

Related Links

• OSFI Letter
• Draft Advisory

Keywords: Americas, Canada, Banking, G-SIB, G-SIB Identification, Reporting, Pillar 3, Disclosures, Basel, Assessment Methodology, OSFI