OSFI Releases Guideline on Foreign Bank Branch Deposit Requirements
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
Related Links
Effective Date: January 01, 2020
Keywords: Americas, Canada, Banking, Foreign Bank Branches, Guideline A-10, Deposit Requirement, Deposit Ratio, OSFI
Related Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
