![]() Stakeholders indicated that the investment benefit of an IT solution for institutions approved to use the IMM, but who are currently lacking systems to support the Advanced Credit Valuation Adjustment approach (A-CVA), would be temporary in nature given the need to be replaced by a revised approach in 2024. OSFI’s domestic implementation of these reforms will help to promote continued public confidence in the Canadian financial system by reinforcing the overall safety and soundness of Canadian banks.Īssistant Superintendent, Regulation Sector Annex 1 – OSFI Final Policy Positions on Key Topics related to Stakeholder Feedback CAR Guideline ItemĬhapter 1 – Overview of Risk-based Capital RequirementsĪbility to use the Internal Models Method (IMM) for measuring Counterparty Credit Risk (CCR) exposureĬhapter 1, paragraph 35 states that the IMM cannot be used directly or indirectly in the calculation of the output floor. The internationally agreed upon Basel III reforms provide a sound foundation for a resilient banking system in Canada. However, in advance of these events, clarity on final policy positions on the items discussed in the annexes Footnote 4 will help institutions continue their preparations ahead of implementation of the guideline revisions in Q2 2023 (with the exception of market risk and credit valuation adjustment risk, which will be implemented in Q1 2024). Subsequently, OSFI will host a technical briefing for financial analysts whose area of coverage includes Canadian banks to address questions related to the final guidance. OSFI will complement the information contained in the annexes to this letter with specific revisions to the guidelines noted above (to be released in January 2022). Pillar 3 Disclosure Requirements Guidelines.SMSB Capital and Liquidity Requirements Guideline and.Liquidity Adequacy Requirements (LAR) Guideline.Capital Adequacy Requirements (CAR) Guideline.Recognizing the importance of lead times in supporting timely implementation, OSFI is also announcing today details of its final policy positions on a series of key topics associated with the following guidelines that were the subject of extensive consultations in the spring of 2021 Footnote 3: These changes to implementation dates will provide institutions with the necessary time to address the breadth and depth of systems changes required to operationalize guidance revisions. ![]() ![]() Revisions to the Liquidity Adequacy Requirements (LAR) Guideline will be implemented as of Apfor all institutions. Consistent with this change, OSFI is also delaying the timing for the implementation of the Small and Medium-Sized Deposit-Taking Institutions (SMSB) Capital and Liquidity framework and changes to the Pillar 3 Disclosure Requirements Guidelines for all institutions, also to Q2 2023 Footnote 2. OSFI is announcing today a deferral in the timing for the domestic implementation of the final Basel III reforms Footnote 1 by one quarter from Q1 2023 to Q2 2023. The purpose of this letter is to update institutions on the Basel III start date and to overview key policy decisions following OSFI consultation earlier this year.
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