OSFI issued final versions of its guidelines on total loss-absorbing capacity (TLAC) disclosure requirements and capital disclosure requirements. The guidelines set out the TLAC disclosure requirements for Canadian domestic systemically important banks, or D-SIBs, (including any designated Canadian G-SIBs). D-SIBs must publicly disclose the TLAC information commencing with the quarterly reporting period ending January 31, 2019.
The purpose of the TLAC requirements is to provide a non-viable D-SIB with sufficient loss-absorbing capacity to support its recapitalization. The guideline on TLAC Disclosure Requirements incorporates the TLAC disclosure templates published in the BCBS Pillar 3 Disclosure Requirements, which were issued in March 2017 (also referred to as Phase II of Pillar 3). The disclosures outlined in this guideline complement TLAC guideline of OSFI, which was issued in April 2018.
The guideline on Capital Disclosure Requirements, which applies to all federally regulated deposit-taking institutions, has been also updated. The amendments to this guideline reflect the disclosure of TLAC holdings and the removal of previous transitional guidance that is no longer applicable as of January 01, 2018.
Related Link: Notification and Guidelines
Effective Date: November 2018/January 2019 (depending on fiscal year end)
Keywords: Americas, Canada, Banking, TLAC, Disclosures, D-SIBs, OSFI
Previous ArticleESMA Updates Q&As on MiFID II and MiFIR
APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.
ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.