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:
i) Providing temporary exclusions to the leverage ratio requirements so that banks are able to support lending.
ii) 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:
i) 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.
ii) 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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