OSFI announced an eight-month extension for deposit-taking institutions to continue to exclude central bank reserves and sovereign-issued securities from their leverage ratio exposure measures. Accordingly, these exposures will be exempt from the leverage ratio until December 31, 2021. In context of this extension, OSFI also updated the already published frequently asked questions (FAQs) on COVID-19-related measures for the federally regulated deposit-taking institutions.
OSFI plans to assess the situation again closer to December 31, 2021, to determine if the exclusion should be maintained longer. OSFI will ensure that sufficient time is allowed for institutions to reinstitute excluded assets into the leverage ratio exposure measure. This extension is intended to continue to support the ability of institutions to continue to supply credit to the economy amid the COVID-19 crisis.
Keywords: Americas, Canada, Banking, Leverage Ratio, Basel, Central Bank Reserves, Sovereign Securities, COVID-19, OSFI
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