Canada: OSFI publishes final version of Liquidity Principles Guideline

BC Ross Garden - Image by ArtTower from Pixabay

The Office of the Superintendent of Financial Institutions (OSFI) has released the final version of Guideline B-6 on Liquidity Principles. 

Guideline B-6 sets out OSFI’s expectations around the management of liquidity risk for deposit-taking institutions.  It complements the minimum liquidity requirements set out in the Liquidity Adequacy Requirements Guideline. 

Guideline B-6 was last updated in 2012.  Since then, market practices have evolved and the complexity of both measuring and managing liquidity risk has increased.  

According to the regulator, the changes aim to ensure that the guideline remains current and appropriate for the scale and complexity of institutions.

Guideline B-6 will take effect on January 1, 2020.

Photo Credit: Pixabay

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