Canada: OSFI finalizes Guideline on Foreign Bank Branch Deposit Requirement
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The Office of the Superintendent of Financial Institutions (OSFI) has published Guideline A-10: Foreign Bank Branch Deposit Requirement.
Guideline A-10 addresses OSFI’s expectations with respect to the minimum deposit which authorized foreign banks must maintain in respect of their business in Canada.
It establishes rules around the required deposit, including:
- the need for a deposit agreement;
- what assets qualify for inclusion in the deposit;
- how to deposit or withdraw assets; and
- how to calculate and report the required deposit.
The previous version of Guideline A-10 dates back to 2002. The most notable change from this earlier version is regarding deposit ratio calculation, which will now exclude off-balance sheet liabilities and include accrued expenses.
The guideline takes effect on January 1, 2020.
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