Featured Product

    OSFI Consults on Revisions to Capital Adequacy Requirements Guideline

    July 06, 2018

    OSFI is consulting on revisions to the Capital Adequacy Requirements (CAR) Guideline for implementation in the first quarter of 2019. The changes mainly relate to the domestic implementation of the standardized approach to counterparty credit risk (SA-CCR), the revisions to the capital requirements for bank exposures to central counterparties (CCPs), and revisions to the securitization framework. Comments are due by August 31, 2018.

    The objective of OSFI is to ensure that the guideline remains comprehensive and that the requirements reflect the underlying risk. Implementation date is November 01, 2018 for institutions with an October 31 year-end and January 01, 2019 for institutions with a December 31 year-end. Other proposed changes to the guideline include the following:

    • Clarifications to the capital treatment for right-of-use assets resulting from the adoption of IFRS 16 on Leases, beginning in the first quarter of 2019. This treatment will become effective for institutions on their adoption of IFRS 16.
    • Changes to the capital floor, as outlined in the letter issued by OSFI on January 12, 2018, and removal of the Credit Valuation Adjustment (CVA) phase-in and other transitional arrangements that conclude at the end of 2018.
    • Recognition of Kroll Bond Rating Agency Inc. as an eligible external credit assessment institution (ECAI) for capital purposes, effective immediately.
    • Clarifications throughout the CAR Guideline in response to questions received from the industry as part of the regular annual updates.

     

    Related Links

    Comment Due Date: August 31, 2018

    Effective Date: November 01, 2018/January 01, 2019 (depending on fiscal year-end)

    Keywords: Americas, Canada, Banking, CAR, SA-CCR, IFRS 16, CCP, Securitization Framework, Capital Floor, Basel III, OSFI

    Featured Experts
    Related Articles
    News

    BOE Article Explains Process for Bank Authorization in UK

    BoE published an article, in the Quarterly Bulletin for the third quarter of 2019, on how banks are authorized in the UK.

    September 20, 2019 WebPage Regulatory News
    News

    HKMA on Commencement of Regulatory Regime Under Insurance Ordinance

    HKMA announced the commencement of new licensing and regulatory regime for insurance intermediaries under the Insurance Ordinance from September 23, 2019.

    September 20, 2019 WebPage Regulatory News
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    FCA Welcomes ISDA Protocol on Narrowly Tailored Credit Events

    FCA published an update to its initial joint statement with the U.S. SEC and CFTC on opportunistic strategies in the credit derivatives markets.

    September 19, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3853