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Perspectives

Rapport sur la législation et la réglementation applicables aux institutions financières fédérales — avril 2019

Le Reporter est un sommaire mensuel de l'évolution des législations et réglementations internationales et fédérales canadiennes qui sont pertinentes pour les institutions financières de régime fédéral au Canada.

Le Reporter (publié en anglais seulement) est un sommaire mensuel de l'évolution des législations et réglementations internationales et fédérales canadiennes qui sont pertinentes pour les institutions financières de régime fédéral au Canada. Il ne traite pas de l'évolution législative ou réglementaire des services financiers provinciaux, bien que BLG suive de près tout changement dans ce secteur et puisse, sur demande, fournir de l'information à ce sujet. De plus, les modifications de nature purement technique et administrative (comme celles qui sont apportées aux formulaires de rapport) ne sont pas traitées.

Avril

Institution

Published

Title and Brief Summary

Status

OSFI [Banks,Bank Holding Companies, Federally Regulated Trust and Loan Companies]

April 11, 2019

Revised Liquidity Adequacy Requirements guideline

The Office of the Superintendent of Financial Institutions (OSFI) released final revisions to its Liquidity Adequacy Requirements (LAR) guideline. The revised guideline will help financial institutions enhance their resiliency to short-term liquidity stresses, and will ensure that they maintain stable funding profile over the longer-term.

Effective January 1, 2020.

OSFI [Domestic Systemically Important Banks (D-SIBs)]

April 11, 2019

Net Stable Funding Ratio Disclosure Requirements

The Office of the Superintendent of Financial Institutions (OSFI) is issuing the final version of the Net Stable Funding Ratio Disclosure Requirements Guideline. This guideline sets out the NSFR disclosure requirements for Domestic Systemically Important Banks (D-SIBs). This follows a public consultation in February 2019.

Effective with the quarterly reporting period ending January 31, 2021.

OSFI Domestic Systemically Important Banks (D-SIBs)]

April 10, 2019

Final Guideline B-2: Large Exposure Limits for D-SIBs

The Office of the Superintendent of Financial Institutions (OSFI) released the final version of its Guideline B-2:Large Exposure Limits for Domestic Systemically Important Banks.

Large exposure limits help to constrain the maximum loss an institution could face in the event of a sudden failure of a counterparty.

The guideline reflects current sound practices for the management of risks related to large exposures and provides additional guidance on methods OSFI expects D-SIBs to use for identifying, measuring, managing and monitoring risks in this area.

Parts of this guideline are drawn from the Basel Committee on Banking Supervision large exposure framework entitled:Supervisory framework for measuring and controlling large exposures.

This new version of Guideline B-2:

  • Introduces tighter limits for exposures to both Global Systemically Important Banks and to other Canadian D-SIBs.
  • Recognizes eligible credit risk mitigation techniques by measuring exposure on a net basis rather than a gross basis.
  • Reduces the eligible capital base from Total capital to Tier 1 capital.

Effective November 1, 2019.

Bank for International Settlements

April 9, 2019

Consolidated Basel Framework

The Basel Committee on Banking Supervision has launched anew section of its website that sets out a consolidated version of its global standards for the regulation and supervision of banks. The consolidated framework aims to improve the accessibility of the Basel Committee's standards and to promote consistent global interpretation and implementation. The framework has been published initially in draft form, together with a consultative document to gather feedback on the website and on various proposed technical amendments to the standards.

Comments should be submitted by August 9, 2019.

Finance Canada

April 8, 2019

Bill C-97,Budget Implementation Act, 2019, No. 1, was introduced on April 8, 2019. It provides for the following:

  • Part 4, Division I, Subdivision A amends the Bank Act to, among other things, provide members of federal credit unions with different methods of voting prior to meetings and provide additional exceptions to the requirement that a proxy circular be sent in order to solicit proxies. The Subdivision also makes a technical amendment to An Act to amend certain Acts in relation to financial institutions. (These amendments will come into force upon Royal Assent.)
  • Part 4, Division I, Subdivision B amends the Canadian Payments Act to allow the term of the elected directors of the Board of Directors of the Canadian Payments Association to be renewed twice, to extend the term of the Chairperson and Deputy Chairperson of that Board and to allow the remuneration of certain members of the Stakeholder Advisory Council. (This amendment will come into force upon proclamation.)

 

 

Disclaimer

This Reporter is prepared as a service for our clients. It is not intended to be a complete statement of the law or an opinion on any subject. Although we endeavour to ensure its accuracy, no one should act upon it without a thorough examination of the law after the facts of a specific situation are considered.

To view the Reporter for previous months, please visit our Banking and Financial Services publications page.