Featured Product

    OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR

    April 12, 2021

    OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021. The letter also stated that internal audit of the 2021 Basel Capital Adequacy Reporting (BCAR) return must be submitted by February 28, 2022. OSFI expects the Internal Audit function of each institution to provide a review of the completeness and accuracy of one BCAR submission during the year including, but not limited to, a review of the accurate categorization of risk-weighted assets, completeness of off-balance sheet amounts, and accurate amounts for credit risk mitigation. The letter has been issued to deposit-taking institutions using the Basel standardized approach to credit risk.

    While formal ICAAP submission is not required in 2021, OSFI expects that standardized deposit-taking institutions will continue to practice prudent capital management. This includes the continued implementation of their ICAAP program to identify, quantify, and substantiate to their boards the Pillar 2 risks that underpin their target capital levels. OSFI recognizes that increased risks have emerged due to the pandemic and believes that a robust ICAAP enhances  the ability of a standardized deposit-taking institution to manage through the current environment and all stages of business cycles. Therefore, OSFI expects standardized deposit-taking institutions to update their ICAAP as part of the annual capital planning process. This should include reconfirmation of internal capital targets. Lead supervisors may request ICAAP documentation as part of the ongoing supervisory review process of OSFI. The OSFI guideline on ICAAP and enterprise-wide model risk management provides further details on the requirement to institute an ICAAP process, including robust model governance for Pillar 2 risk quantification.

     

    Related Links

    Keywords: Americas, Canada, Banking, Basel, ICAAP, BCAR, Regulatory Capital, Reporting, Standardized Approach, Credit Risk, Pillar 2, OSFI

    Featured Experts
    Related Articles
    News

    EC Regulation Sets Out Standards for Reporting and Disclosure of MREL

    EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).

    May 12, 2021 WebPage Regulatory News
    News

    EBA Report Notes Loan Origination Should Remain in Supervisory Focus

    EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.

    May 12, 2021 WebPage Regulatory News
    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

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    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

    IOSCO Sees Support for Mandatory Sustainability Reporting

    The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6967