Office of the Superintendent of Financial Institutions announced that the Domestic Stability Buffer—a policy tool that helps ensure the stability of Canada’s financial system—will be set at 2.50 per cent of total risk-weighted assets. This is an increase from its current level of 1.00 per cent and this change will take effect on Oct. 31, 2021. The DSB was … Read more
The Office of the Superintendent of Financial Institutions announced that, effective June 1, the minimum qualifying rate for uninsured mortgages (i.e., residential mortgages with a down payment of 20 per cent or more) will be the greater of the mortgage contract rate plus 2 per cent or 5.25 per cent. The full release is available … Read more
The Office of the Superintendent of Financial Institutions released its prudential policy priorities for the next year. This plan builds on lessons and work throughout the COVID-19 pandemic. It sets out clear priorities and timelines to develop policies and guidance that will support continued resilience of banks, insurers and federally regulated private pension plans. The … Read more
The Office of the Superintendent of Financial Institutions launched a ten-week consultation with the publication of a discussion paper, Assurance on Capital, Leverage and Liquidity Returns for federally regulated insurers and deposit-taking institutions. The paper focuses on enhancing and aligning assurance expectations given the increasing complexity arising from the evolving regulatory reporting framework, particularly changes resulting from International … Read more
The Office of the Superintendent of Financial Institutions restarted its consultation on the minimum qualifying rate for uninsured mortgages, and re-emphasized the importance of sound mortgage underwriting. The new proposal for the qualifying rate for uninsured mortgages is the higher of the mortgage contract rate plus 2 per cent or 5.25 per cent as a minimum … Read more
The Office of the Superintendent of Financial Institutions announced the unwinding of the temporary increase to the covered bond limit, effective immediately. One year ago, OSFI introduced extraordinary regulatory adjustments to support the financial and operational resilience of federally regulated financial institutions in response to the COVID-19 pandemic. The full release is available online. Call 343-550-9373.
The Office of the Superintendent of Financial Institutions announced the unwinding of regulatory adjustments to the market risk capital requirements for banks, effective May 1, 2021. These measures included a reduction in the Stressed Value at Risk (“SVaR”) multiplier, a component of the market risk capital requirements that ensures that a minimum amount of capital is … Read more
The Office of the Superintendent of Financial Institutions launched an industry consultation on proposed regulatory changes to introduce the latest and final round of Basel III reforms into its capital, leverage and related disclosure guidelines for banks. OSFI is seeking input on its proposals until June 4, 2021, while consultation on changes to its disclosure guideline is open until July … Read more
The Office of the Superintendent of Financial Institutions issued direction to federally regulated deposit-taking institutions on how to treat new loans to businesses through the Government of Canada’s recently announced Highly Affected Sectors Credit Availability Program. The full release is available online. Call 343-550-9373.
The Office of the Superintendent of Financial Institutions launched a three-month consultation with the publication of a discussion paper, Navigating Uncertainty in Climate Change: Promoting Preparedness and Resilience to Climate-Related Risks. The paper focuses on risks arising from climate change that can affect the safety and soundness of federally regulated financial institutions and federally regulated pension plans. … Read more
