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.

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