OSFI released the final version of Guideline A-10 on foreign bank branch deposit requirements, along with guideline impact analysis statement. This guideline addresses the expectations of OSFI with respect to the minimum deposit, to be held in trust, which authorized foreign banks must maintain in respect of their business in Canada. The updates ensure a more streamlined Guideline A-10 that better aligns with the Bank Act. The final version of the guideline takes effect on January 01, 2020.
OSFI issued the proposed revisions to the guideline for consultation in June 2019. A summary of material comments along with the OSFI responses has been posted with the final version. The key revisions include:
- Changing the title of the guideline to "Foreign Bank Branch Deposit Requirement" from "Capital Equivalency Deposit"
- Updating and simplifying the guideline to reflect current practices
- Changing the foreign bank branch deposit ratio calculation to exclude off-balance sheet liabilities and include accrued expenses
Effective Date: January 01, 2020
Keywords: Americas, Canada, Banking, Foreign Bank Branches, Guideline A-10, Deposit Requirement, Deposit Ratio, OSFI
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).