The Office of the Superintendent of Financial Institutions (OSFI) has lifted the COVID-related temporary measures on dividends, share repurchases, and executive compensation. Institutions are now allowed to move back to regular dividend and executive compensation practices. OSFI also published remarks by the Superintendent Peter Routledge on lifting of restrictions on capital distribution. The institutions may once again repurchase shares, subject to the existing requirement for Superintendent approval. Additionally, OSFI has updated the manual of reporting forms and instructions for deposit-taking institutions and Canadian mortgage insurance companies.
For deposit-taking institutions, changes have been made to the Financial Information Committee (FIC) regulatory forms and instructions. effective for 2022 filing:
- Mortgage Loans Report (E2)
- Interest Rate Risk (I3)
- Standardized Institutions Risk Asset Portfolio Information—RAPID1 (RAPCORP)
- IRB Credit Data Wholesale Transaction (BF)
- IRB Credit Data Wholesale Transaction Defaulted and Fully Resolved (BG)
- Wholesale IRB Credit Parameter Data Call (DT3)—New (replacing BP filing)
- Retail IRB Credit Parameter Data Call (DT4)—New (replacing BO filing)
- Basel Capital Adequacy Return (BCAR) (BA)—Instructions only
- Interbank and Major Exposures Return (EB/ET)
- Balance Sheet by Booking Location (Z4)
- Collateral and Pledging Report (H4)
- Geographic Assets & Liabilities Booked Outside Canada (GR) (to follow)
- Geographic Assets & Liabilities Booked in Canada (GQ) (to follow)
As part of this year’s annual housekeeping cycle, the Bank of Canada is also implementing a recurring metadata ad hoc data collection for domestic systemically important banks (D-SIBs) as a pilot project effective January 2022. By the end of 2022, a decision will be made on whether this new ad hoc data collection will become an official regulatory return or will be discontinued. Additionally, for Canadian mortgage insurance companies, OSFI has made minor changes to the manual of reporting forms and instructions; this includes changes to Section I on introduction, Section IV on detailed instructions, and Section V on jurisdictional requirements of the MI instructions effective for 2021. No changes have been made to the MI Annual Supplement (MI2) or Quarterly Return (MI1) for the fourth quarter 2021 or the first quarter of 2022. No changes have been made to the Mortgage Insurers Capital Adequacy Test (MICAT) instructions or the MICAT Quarterly Return effective first quarter of 2022. OSFI is also requesting Canadian mortgage insurance companies to file a copy of their annual Business Plan (OSFI-640) via the Regulatory Reporting System no later than 60 days after the fiscal year-end. The Business Plan should include a forecast of the Balance Sheet and the Mortgage Insurance Capital Adequacy Test as at year-end 2022 as well as the Income Statement for 2022.
- Statement on Lifting of Restrictions on Capital Distributions
- Remarks of Superintendent Peter Routledge
- Notification on Reporting Forms and Instructions for D-SIBs
- Manual of Reporting Forms and Instructions for D-SIBs
- Notification on Reporting Forms and Instructions of Insurers
- Manual of Reporting Forms and Instructions for Insurers
Keywords: Americas, Canada, Banking, Reporting, COVID-19, Mortgage Insurance, Dividend Distribution, Basel, BCAR, D-SIBs, Credit Risk, Interest Rate Risk, IRB Approach, Standardized Approach, OSFI
Previous ArticleOJK Launches Blueprint for Digital Transformation of Banking Sector
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances