OSFI Issues Guidelines on TLAC and Capital Disclosure Requirements
OSFI issued final versions of its guidelines on total loss-absorbing capacity (TLAC) disclosure requirements and capital disclosure requirements. The guidelines set out the TLAC disclosure requirements for Canadian domestic systemically important banks, or D-SIBs, (including any designated Canadian G-SIBs). D-SIBs must publicly disclose the TLAC information commencing with the quarterly reporting period ending January 31, 2019.
The purpose of the TLAC requirements is to provide a non-viable D-SIB with sufficient loss-absorbing capacity to support its recapitalization. The guideline on TLAC Disclosure Requirements incorporates the TLAC disclosure templates published in the BCBS Pillar 3 Disclosure Requirements, which were issued in March 2017 (also referred to as Phase II of Pillar 3). The disclosures outlined in this guideline complement TLAC guideline of OSFI, which was issued in April 2018.
The guideline on Capital Disclosure Requirements, which applies to all federally regulated deposit-taking institutions, has been also updated. The amendments to this guideline reflect the disclosure of TLAC holdings and the removal of previous transitional guidance that is no longer applicable as of January 01, 2018.
Related Link: Notification and Guidelines
Effective Date: November 2018/January 2019 (depending on fiscal year end)
Keywords: Americas, Canada, Banking, TLAC, Disclosures, D-SIBs, OSFI
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