OSFI Welcomes Final Basel III Reforms
OSFI welcomed the announcement that the final pieces of the Basel III reforms have been endorsed by the Group of Central Bank Governors and Heads of Supervision, the committee that oversees the BCBS. The announcement followed a meeting in Frankfurt, Germany, and caps an important period in the regulatory response to the financial crisis.
OSFI will launch a public consultation on the domestic implementation of the Basel III reforms in spring 2018. The consultation will focus on potential modifications required for the Canadian context and on the implementation timelines. "Canada is pleased to be part of today’s agreement,” said Jeremy Rudin, Superintendent of Financial Institutions. “The completion of the Basel III reforms is an important step in ensuring a global capital regime for banks that is credible and that enhances confidence in the banking sector."
The Basel III reforms have been introduced through a series of regulatory changes in recent years, designed to address weaknesses in banks’ resiliency that were revealed during the financial crisis. Previous changes were designed to deal with the quantity and quality of bank capital and liquidity. This final set of reforms is aimed at improving the risk sensitivity of capital standards and will increase the transparency and consistency in the way banks measure and report their exposure to various risks, along with the capital held against those risks.
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Keywords: Americas, Canada, Banking, Basel III, Final Basel III Reforms, Capital Framework, OSFI
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