OSFI Consults on Revisions to BCAR and Leverage Requirements Returns
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021. The proposed revisions to the BCAR and leverage requirements returns reflect the regulatory changes (proposed in March 2021) to introduce the latest and final round of Basel III reforms into the capital, leverage, and liquidity requirements as well as the related disclosure guidelines for banks. The proposed revisions to the BCAR and leverage requirements returns also include requirements applicable to small and medium-size deposit-taking institutions (SMSBs).
The BCAR regulatory return will transition to XML filing format from the current “.dat” filing format, effective for the first quarter of 2023 filing and subsequent periods. The transition is driven by the upcoming changes to the BCAR regulatory return and to support system scalability and enhancements. OSFI will support this transition by providing clear specifications, guidance, and tools (for example, XML/XSD files, technical specifications, and instructions). OSFI also published the revised reporting manuals for BCAR and leverage requirements returns. The BCAR return collects data and details on the calculation of the risk-based capital ratio of the reporting institution. For domestic systemically important banks (D-SIBs), the return also collects data used to calculate the risk-based Total Loss-Absorbing Capacity (TLAC) ratio of the reporting D-SIB, along with the details of the calculation. The leverage requirements return covers the leverage ratio of the reporting institution, along with details of the calculation. Both the returns are required to be completed on a quarterly fiscal basis and filed within 30 days of fiscal quarter-end.
Related Links
- Notification
- Summary of Proposed Changes to BCAR Return
- Draft Changes to BCAR Return (XLSX)
- Draft Changes to Leverage Requirements Return (XLSX)
- BCAR Reporting Manual
- Leverage Requirements Return Reporting Manual
Comment Due Date: July 09, 2021
Keywords: Americas, Canada, Banking, BCAR, Basel, Reporting, Regulatory Capital, Credit Risk, Leverage Ratio, 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
Related Articles
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
BIS Bulletin Examines Cognitive Limits of Large Language Models
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
ECB is Conducting First Cyber Risk Stress Test for Banks
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
EBA Continues Momentum Toward Strengthening Prudential Rules for Banks
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
EU and UK Agencies Issue Updates on Final Basel III Rules
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards