Featured Product

    OSFI Lowers Domestic Stability Buffer for Banks to 1%

    March 13, 2020

    OSFI announced a number of actions aimed to build resilience of federally regulated financial institutions and improve the stability of the Canadian financial system, in response to the challenges posed by COVID-19 and current market conditions. One of these measures is the reduction the Domestic Stability Buffer to 1.0%, with immediate effect. The Domestic Stability Buffer was earlier set at 2.25% of risk-weighted assets and was to be effective as at April 30, 2020.

    The release of the Domestic Stability Buffer will support more than $300 billion in additional lending capacity by the domestic systemically important banks or D-SIBs. OSFI expects that banks will use the additional lending capacity to support Canadian businesses and households and should not use this measure to increase distributions to shareholders or employees or to undertake share buybacks. Consistent with this, OSFI has set the expectation for all federally regulated financial institutions that dividend increases and share buybacks should be halted for the time being. OSFI also commits that any increases to the buffer will not take effect for at least 18 months from March 13, 2020. 

    In view of the current developments, OSFI is suspending all of its consultations and policy development on new or revised guidance until conditions stabilize. This includes the new proposed B-20 benchmark rate for uninsured mortgages and the consultation on the minimum qualifying rate for uninsured mortgages. The benchmark rate as currently published by the Bank of Canada will remain in force until further notice. The Minister of Finance also announced the suspension of April 06, 2020 coming-into-force of the new benchmark rate for determining the minimum qualifying rate for insured mortgages. OSFI is reviewing its supervisory and regulatory priorities to align with current conditions and will re-prioritize supervisory work as needed. 

     

    Related Link: News Release

    Keywords: Americas, Canada, Banking, COVID-19, Domestic Stability Buffer, Benchmark Rate, Regulatory Capital, Basel III, OSFI

    Featured Experts
    Related Articles
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    UK Government to Set Out Rules on Wind-down of Critical Benchmarks

    HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.

    May 07, 2021 WebPage Regulatory News
    News

    EIOPA Launches Stress Test for Insurance Sector in EU

    EIOPA launched the 2021 stress test for the insurance sector in EU.

    May 07, 2021 WebPage Regulatory News
    News

    UK Authorities Publish Third Edition of Regulatory Initiatives Grid

    UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.

    May 07, 2021 WebPage Regulatory News
    News

    EC Consults on Regulation on Non-Financial Sustainability Disclosures

    EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.

    May 07, 2021 WebPage Regulatory News
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6944