Canada: OSFI finalizes Guideline on Foreign Bank Branch Deposit Requirement

Canada - Flag (New)

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: i) the need for a deposit agreement; ii) what assets qualify for inclusion in the deposit;
iii) how to deposit or withdraw assets; and iv) 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.

Photo Credit: Pixabay

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s