OSFI Proposes Pillar 3 Disclosure Guideline for Small and Medium Banks
The Office of the Superintendent of Financial Institutions (OSFI) launched a consultation on the draft Pillar 3 Disclosure Guideline for Canadian small and medium-size banks or SMSBs. The draft guideline lists the disclosures required by small and medium-size banks and their respective implementation dates. OSFI proposes to implement these requirements proportionally and plans to include the detailed tables and templates in the final guideline. The mandatory effective date for most disclosure tables and templates is expected to be sometime in 2023. The feedback period on the draft guideline ends on September 29, 2021, with the effective date for the finalized guideline expected to be November 01, 2022.
The draft guideline contains updated disclosure expectations and is intended to serve as a comprehensive source for Pillar 3 disclosure requirements for small and medium-size banks. The guideline presents five guiding principles for Pillar 3 disclosures by small and medium-size banks and specifies Basel-related disclosure requirements. OSFI proposes to implement a proportional set of Pillar 3 disclosure requirements for small and medium-size banks:
- Category 1 (banks with >$10 billion in total assets): Internal ratings-based or IRB-approved small and medium-size banks will be required to disclose up to 30 tables/templates.
- Category 1: Non-IRB-approved small and medium-size banks will be required to disclose up to 22 tables/templates.
- Category 2 (banks with <$10 billion in total assets, if report >$100 million in loans): Small and medium-size banks will be required to disclose five tables/templates.
- Category 3 (banks with <$10 billion in total assets, if report <$100 million in loans): Small and medium-size banks will be required to disclose three tables/templates.
Annex 1 to the draft guideline presents minimum mandatory disclosure requirements for small and medium-size banks by format, reporting frequency, and implementation date for each category the small and medium-size banks fall into. The proposed guideline will apply to all small and medium-size banks, except for foreign bank branches, and subsidiaries of small and medium-size banks or domestic systemically important banks (D-SIBs) that report consolidated results to OSFI. Small and medium-size bank category covers banks (including federal credit unions), bank holding companies, federally regulated trust companies, and federally regulated loan companies that have not been designated by OSFI as D-SIBs. This includes subsidiaries of small and medium-size banks or D-SIBs that are banks (including federal credit unions), federally regulated trust companies, or federally regulated loan companies.
Related Links
Comment Due Date: September 29, 2021
Keywords: Americas, Canada, Banking, Pillar 3, Reporting, Basel, Disclosures, Proportionality, SMSBs, D-SIBs, Small and Medium Size Banks, OSFI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
OCC Bulletin Sets Out Risk Management Principles for SBA LendingRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
