Featured Product

    OSFI Released Draft Guideline on TLAC for D-SIBs in Canada

    June 16, 2017

    OSFI released, for comment, a draft guideline on total loss-absorbing capacity (TLAC). This guideline will apply to the domestic systemically important banks (D-SIBs) in Canada, as part of the Federal government’s Bank Recapitalization (Bail-in) Regime. OSFI is issuing its draft TLAC guideline in conjunction with the pre-publication of certain bail-in regulations by the Department of Finance. The deadline for submitting comments on the draft TLAC guideline is July 17, 2017.

    The draft TLAC guideline of OSFI is consistent with the FSB's TLAC standard for global systemically important banks (G-SIBs), but is tailored to the Canadian context. FSB published its final TLAC standard for G-SIBs in November 2015. Public  disclosure of D-SIBs’ TLAC ratios will begin for the fiscal quarter commencing on November 01, 2018; however, D-SIBs will have until November 01, 2021 to fully meet the TLAC requirements. OSFI will release the final TLAC guideline later this year. The TLAC framework, which Canada is extending to its six largest banks, is designed to ensure that a systemically important bank has sufficient loss-absorbing capacity to support its recapitalization in the unlikely event of its failure. The framework would facilitate an orderly resolution of a bank to allow it to remain open and operating without requiring public funds or threatening financial stability.

     

    Moreover, the regulatory capital adjustments for the treatment of TLAC holdings are being implemented through revisions to OSFI’s Capital Adequacy Requirements (CAR) guideline. The draft changes will align OSFI’s expectations with the Basel Committee on Banking  Supervision’s standard on the regulatory capital treatment of banks’ holdings of TLAC instruments. OSFI is proposing to extend the Basel III standard to the TLAC holdings issued by Canadian D-SIBs. These changes will be effective in 2018. Along with the Capital Adequacy Requirements (CAR) guideline and the Leverage Requirements guidelinethe proposed TLAC guideline will provide OSFI with a robust framework to assess a D-SIB’s minimum capacity to absorb  losses. The deadline for submitting comments on the revisions to the CAR guideline is also  July  17, 2017.

     

    Related Links

    TLAC Guideline of OSFI

    Bail-In Regulations of OSFI

    Final TLAC Standard of FSB

    Basel Standard on TLAC Holdings

    Keywords: Americas, OSFI, Banking, TLAC, Basel III, CAR, Canada

    Featured Experts
    Related Articles
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    FDIC Letter on Submission of Call Reports by End of January 2020

    FDIC, in a letter to financial institutions, announced that the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2019 report date must be submitted to the Central Data Repository of the relevant US agencies by January 30, 2020.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Consults on Calculation of Own Funds Requirements for Market Risk

    EBA is consulting on the draft regulatory technical standards for calculation of the own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4489