For Immediate Release
OTTAWA ─ December 7, 2017 ─ Office of the Superintendent of Financial Institutions Canada
The Office of the Superintendent of Financial Institutions (OSFI) welcomes today’s announcement that the final pieces of the Basel III reforms have been endorsed by the Group of Central Bank Governors and Heads of Supervision, the committee that oversees the Basel Committee on Banking Supervision. The announcement followed a meeting earlier today in Frankfurt, Germany, and caps an important period in the regulatory response to the financial crisis.
The Basel III reforms have been introduced through a series of regulatory changes in recent years, designed to address weaknesses in banks’ resiliency that were revealed during the financial crisis. Previous changes were designed to deal with the quantity and quality of bank capital and liquidity. This final set of reforms is aimed at improving the risk sensitivity of capital standards and will increase the transparency and consistency in the way banks measure and report their exposure to various risks, and the capital held against those risks.
OSFI will launch a public consultation on the domestic implementation of the Basel III reforms in spring 2018. The consultation will focus on potential modifications required for the Canadian context and on the implementation timelines.
"Canada is pleased to be part of today’s agreement,” said Jeremy Rudin, Superintendent of Financial Institutions. “The completion of the Basel III reforms is an important step in ensuring a global capital regime for banks that is credible and that enhances confidence in the banking sector."
- The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters. Its mandate is to strengthen the regulation, supervision and practices of banks worldwide with the purpose of enhancing financial stability. Canada is represented on the BCBS by Senior Executives from OSFI and the Bank of Canada.
- The Group of Central Bank Governors and Heads of Supervision (GHOS) is the oversight body for the BCBS. Canada is represented on GHOS by the Superintendent of Financial Institutions and the Governor of the Bank of Canada.
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
OSFI – Public Affairs