Advancing Proportionality in OSFI’s Capital and Liquidity Regime

Document Properties

  • Type of Publication: Letter
  • Date : July 11, 2019

OSFI is releasing a discussion paper on its initiative to advance proportionality in the capital and liquidity regime for small and medium sized deposit-taking institutions, referred to herein as SMSBs. This initiative will explore revisions to the SMSB capital and liquidity frameworks to better reflect the size, nature, complexity and business activities of these institutions.

The accompanying discussion paper outlines OSFI's proposals for the segmentation of SMSBs and the application of more tailored capital and liquidity requirements. This paper focuses on the first phase of this initiative – the Pillar 1 minimum requirements. Subsequent phases will focus on the Pillar 2 (prudential and risk management expectations) and Pillar 3 (public disclosure) requirements and will be the subject of future consultations.

Interested stakeholders are invited to provide comments on all aspects of this discussion paper. The paper also includes specific questions on which we are seeking stakeholder responses.

Comments on the discussion paper should be submitted to OSFI by email at SMSB.Proportionality@osfi-bsif.gc.ca by September 27, 2019.

Yours truly,

Bernard Dupont
Acting Assistant Superintendent
Regulation Sector