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The Reporter provides a monthly summary of Canadian federal legislative and regulatory developments of relevance to federally regulated financial institutions.
The Reporter provides a monthly summary of Canadian federal
legislative and regulatory developments of relevance to federally
regulated financial institutions. It does not address Canadian
provincial financial services legislative and regulatory
developments, although this information is tracked by BLG and can
be provided on request. In addition, purely technical and
administrative changes (such as changes to reporting forms) are not
covered.
for credit risk (including provisions for prudential treatment
of assets), operational risk, the leverage ratio and credit
valuation adjustment ("CVA");
that would benchmark a bank's risk-weighted assets
("RWA") as calculated by its internal models with RWA
calculated according to the standardized approaches; and
that provide an overview of risk management, key prudential
metrics and RWA.
Moreover, it proposes new disclosure requirements on asset
encumbrance and capital distribution constraints.
The following amendments were approved by Payments Canada's
board of directors and the Department of Finance:
New ACSS Rule L3 — Collateral to provide for the
procedures and methodologies for:
The initial establishment of a collateral pool and collateral
pool pledge of each direct clearer, and the monthly recalibrations
of the collateral pool size and collateral pool pledges to account
for changes to value being cleared and settled through ACSS;
The recalculation of the collateral pool pledge of each direct
clearer upon a default or the withdrawal of a direct clearer;
and
The calculation of the collateral pool pledge of a new direct
clearer.
ACSS Rule L1 amendments to provide for:
The methodology for calculating default and additional
contributions of surviving direct clearers;
The process for making such contributions.
ACSS Rule B1 — amendments to incorporate into the Rules
the current time at which settlement will be effected (note that
there is no change to the current settlement time).
Effective
OSFI [Banks,
Bank Holding Companies,
Federally Regulated Trust and Loan Companies,
Cooperative Retail Associations]
Based on implementation progress at the international level,
OSFI has determined that it will target a revised NSFR
implementation date for Canadian deposit-taking institutions.
Relevant areas of the Liquidity Adequacy Requirements
("LAR") Guideline have been updated to reflect the
domestic NSFR implementation delay. Until OSFI begins its public
consultation process on the NSFR rules and issues a draft guideline
for comment, the LAR Guideline will continue to contain placeholder
text reflecting OSFI's commitment to implement the NSFR
standard in Canada.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.