Office of the Superintendent of Financial Institutions
OSFI’s LAR Guideline provides a framework for assessing the liquidity adequacy of banks, bank holding companies, and federally regulated trust and loan companies (collectively, referred to as “institutions).
The LAR Guideline should be updated periodically to ensure that liquidity requirements continue to reflect underlying risks, developments in the financial industry, and evolving international standards.
OSFI’s objective is to ensure that the LAR Guideline remains comprehensive, fit-for-purpose, and that the requirements reflect the underlying risk. Specifically, these revisions:
OSFI issued the draft LAR Guideline for public consultation in March 2021. A summary of the material comments received from industry stakeholders and an explanation of how they have been addressed has been published along with the final Guideline.
It is recommended that the LAR Guideline be updated to ensure liquidity requirements continue to reflect the underlying risks facing institutions as well as market developments and evolving international standards.
The final version of the Guideline will be effective on April 1, 2023. OSFI will monitor adherence to the Guideline through its ongoing supervision of institutions.