Proposed changes to the Guideline B-6 – Liquidity Principles

Document Properties

  • Type of Publication: Letter
  • Date: July 18, 2019
  • No: B-6
  • Reference: Guideline for Banks / BHC / T&L
  • To:
    • Banks
    • Bank Holding Companies
    • Federally Regulated Trust and Loan Companies

OSFI is issuing proposed revisions to its Guideline B-6 – Liquidity principles for consultation. Guideline B-6 sets out OSFI's expectations around the management of liquidity risk for banks, bank holding companies and federally regulated trust and loan companies. Together with the Liquidity Adequacy Requirements (LAR) Guideline, which outlines a set of quantitative liquidity standards and metrics, it forms the framework under which OSFI assesses the liquidity adequacy of the institutions it supervises.

Guideline B-6 was last updated in 2012. The changes proposed aim to ensure that the guideline remains current and relevant as well as appropriate for the scale and complexity of institutions. In addition, as a result of OSFI's supervisory assessments, the updated guidance includes additional clarity on OSFI's expectations regarding institutions' liquidity risk management practices.

OSFI is targeting implementation of the proposed revisions to Guideline B-6 for January 1, 2020.

Questions, comments, and feedback related to implementation challenges, concerning the guideline can be sent to Robert Bélanger, Senior Analyst, Capital Division, by email at robert.belanger@osfi-bsif.gc.ca no later than September 13, 2019. A non-attributed summary of industry comments received along with OSFI's responses will be posted on OSFI's website when the final version of the guideline is released.

Sincerely,

Bernard Dupont
Acting Assistant Superintendent, Regulation Sector