Canada: OSFI announces Additional Regulatory Flexibility Measures in response to COVID-19 Pandemic
The Office of the Superintendent of Financial Institutions has announced further regulatory adjustments to support the financial and operational resilience of federal banks during the COVID-19 pandemic.
The measures focus primarily on capital adequacy requirements for these institutions as well as changes in their reporting requirements.
Key measures announced include:
- Providing temporary exclusions to the leverage ratio requirements so that banks are able to support lending.
- Lowering the capital floor for banks using the Internal Ratings Based approach to credit risk to preserve the risk sensitivity of the framework and support lending.
Other measures cover:
- Providing clarity on the application of the April 3 release by the Basel Committee on Banking Supervision to ensure the items noted are fit for purpose in the Canadian context.
- Providing additional details on the expected credit loss capital treatment and the associated regulatory reporting, as outlined in OSFI’s March 27 news release.
You can find additional details here.
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