OSFI Proposes Revisions to Disclosures for G-SIB Identification
OSFI proposed revisions to the Advisory on public disclosure requirements for identification of global systemically important banks (G-SIBs). The draft revised Advisory addresses changes to the disclosure requirements included in the updated BCBS assessment methodology on G-SIB identification. The comment period for draft revised Advisory ends on July 16, 2021. OSFI expects to issue the final Advisory later in 2021, along with a non-attributed summary of the comments received and the OSFI response to these comments. On finalization, this draft Advisory will replace and revise the previous Advisory that was released on September 11, 2015.
BCBS had issued, in July 2018, an updated assessment methodology that is used annually by BCBS and FSB to identify G-SIBs. The updated assessment methodology included revised requirements for annual public disclosure of selected data captured within the assessment methodology. This Advisory updates the implementation of this disclosure requirement on G-SIB indicators in Canada. The disclosure requirement is based on the status of each bank in accordance with the annual G-SIB identification exercise, which includes:
- Disclosure requirement for banks that meet the criterion for public disclosure of data, but that have not been identified as a G-SIB by FSB in the previous financial year. These banks are required to publicly disclose, at a minimum, the Canadian-dollar denominated values of the 13 indicators comprising the G-SIB assessment methodology, using the reporting template.
- Disclosure requirement for banks that have been identified as G-SIBs by FSB in the previous financial year. In addition to the existing reporting template, these banks are required to publicly disclose the CAD denominated values of all line items in the detailed data template used by BCBS and FSB for the annual G-SIB identification exercise. The BCBS template provides the full calculation of each of the 13 indicators captured in the existing reporting template.
Additionally, whether required to publicly disclose data, banks should include any additional information deemed useful to facilitate understanding of the data, including how it should be interpreted within the context of the assessment methodology used by BCBS and FSB in the annual identification of G-SIBs. Banks should indicate the financial year-end date of the information reported and the date of first public disclosure. Regarding narrative commentary, all banks should provide discussion of the main drivers behind any material change in one or more of the 13 indicator values compared to the prior year and explain any relevant qualitative characteristic deemed necessary for understanding the quantitative data.
A bank may choose to disclose required information of this Advisory within its published Pillar 3 report, or within its report to shareholders. If a bank chooses to disclose the required information in the report to shareholders, it must be clearly indicated in the bank’s Pillar 3 report. Regardless of whether the disclosure of required information is included in the annual Pillar 3 report, a bank's annual Pillar 3 report and all the interim Pillar 3 reports should include a reference to the website where current and previous disclosures of required information can be found. This Advisory applies to federally regulated banks with a Basel III leverage ratio exposure measure (including exposures arising from insurance subsidiaries) exceeding EUR 200 billion at financial year-end, or to any bank that was included in the assessment sample by OSFI based on supervisory judgment.
Related Links
Keywords: Americas, Canada, Banking, G-SIB, G-SIB Identification, Reporting, Pillar 3, Disclosures, Basel, Assessment Methodology, 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
NGFS Publishes Second Set of Scenarios for Climate Risk AssessmentRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.