General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
June 16, 2017

OSFI released, for comment, a draft guideline on total loss-absorbing capacity (TLAC). This guideline will apply to the domestic systemically important banks (D-SIBs) in Canada, as part of the Federal government’s Bank Recapitalization (Bail-in) Regime. OSFI is issuing its draft TLAC guideline in conjunction with the pre-publication of certain bail-in regulations by the Department of Finance. The deadline for submitting comments on the draft TLAC guideline is July 17, 2017.

The draft TLAC guideline of OSFI is consistent with the FSB's TLAC standard for global systemically important banks (G-SIBs), but is tailored to the Canadian context. FSB published its final TLAC standard for G-SIBs in November 2015. Public  disclosure of D-SIBs’ TLAC ratios will begin for the fiscal quarter commencing on November 01, 2018; however, D-SIBs will have until November 01, 2021 to fully meet the TLAC requirements. OSFI will release the final TLAC guideline later this year. The TLAC framework, which Canada is extending to its six largest banks, is designed to ensure that a systemically important bank has sufficient loss-absorbing capacity to support its recapitalization in the unlikely event of its failure. The framework would facilitate an orderly resolution of a bank to allow it to remain open and operating without requiring public funds or threatening financial stability.


Moreover, the regulatory capital adjustments for the treatment of TLAC holdings are being implemented through revisions to OSFI’s Capital Adequacy Requirements (CAR) guideline. The draft changes will align OSFI’s expectations with the Basel Committee on Banking  Supervision’s standard on the regulatory capital treatment of banks’ holdings of TLAC instruments. OSFI is proposing to extend the Basel III standard to the TLAC holdings issued by Canadian D-SIBs. These changes will be effective in 2018. Along with the Capital Adequacy Requirements (CAR) guideline and the Leverage Requirements guidelinethe proposed TLAC guideline will provide OSFI with a robust framework to assess a D-SIB’s minimum capacity to absorb  losses. The deadline for submitting comments on the revisions to the CAR guideline is also  July  17, 2017.


Related Links

TLAC Guideline of OSFI

Bail-In Regulations of OSFI

Final TLAC Standard of FSB

Basel Standard on TLAC Holdings

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

Related Insights

FSB Report Examines Financial Stability Implications of Fintech

FSB published a report that assesses fintech-related market developments and their potential implications for financial stability.

February 14, 2019 WebPage Regulatory News

US Agencies Amend Regulatory Capital Rule to Allow Phase-In for CECL

US Agencies (FDIC, FED, and OCC) adopted the final rule to address changes to credit loss accounting under the U.S. generally accepted accounting principles; this includes banking organizations’ implementation of the current expected credit losses (CECL) methodology.

February 14, 2019 WebPage Regulatory News

OCC Consults on Company-Run Stress Test Requirements for Banks

OCC proposed amendments to its company-run stress testing requirements for national banks and Federal savings associations, consistent with section 401 of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

February 12, 2019 WebPage Regulatory News

CFTC Extends Comment Periods for Trade Execution Requirement Proposals

CFTC announced that it is extending comment period for the proposed amendments related to the regulations on swap execution facilities (SEF) and trade execution requirement.

February 12, 2019 WebPage Regulatory News

OCC Proposes to Renew Information Collection Under Stress Test Rule

OCC is proposing to renew its information collection titled “Annual Stress Test Rule” (OMB Control No: 1557-0311). Comments must be received on or before March 13, 2019.

February 11, 2019 WebPage Regulatory News

OSFI Consults on NSFR Disclosure Requirements for D-SIBs

OSFI proposed the draft guideline on the net stable funding ratio (NSFR) disclosure requirements for domestic systemically important banks (D-SIBs).

February 11, 2019 WebPage Regulatory News

EC Amends Its Regulation to Clarify Impairment Requirements for IFRS 9

EC published the EU Regulation 2019/237 that amends Regulation (EC) No 1126/2008 adopting certain international accounting standards, in accordance with Regulation (EC) No 1606/2002 regarding International Accounting Standard (IAS) 28 on Investments in Associates and Joint Ventures.

February 11, 2019 WebPage Regulatory News

FSB Chair Randal Quarles Speaks About the Upcoming Work of FSB

While speaking at the BIS Special Governors Meeting in Hong Kong, Randal K. Quarles, the Chair of FSB and Vice Chair of FED, discussed his views on how the work of FSB must evolve and the key principles that, he believes, should inform that work.

February 10, 2019 WebPage Regulatory News

OSFI Proposes to Amend the Liquidity Adequacy Requirements for Banks

OSFI proposed revisions to the Liquidity Adequacy Requirements (LAR) Guideline for banks. OSFI published the proposed drafts (with proposed changes highlighted in yellow) of Chapters 1,2, 4, and 5 of the LAR guideline.

February 08, 2019 WebPage Regulatory News

HKMA Publishes FAQs on Local Implementation of IRRBB Framework

HKMA published the frequently asked questions (FAQs) related to the local implementation of the interest rate risk in the banking book (IRRBB).

February 08, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2593