Office of the Superintendent of Financial Institutions
OSFI's Leverage Requirements (LR) guideline sets out the framework for the leverage ratio, which provides an overall measure of the adequacy of an institution's capital and serves as a supplementary measure to the risk-based capital requirements specified in the Capital Adequacy Requirements (CAR) guideline.
OSFI is issuing a revised version of the CAR guideline that includes changes related to derivatives exposures and certain securitization exposures. Without appropriate changes, the LR guideline would not align with the CAR guideline.
OSFI's objective is to ensure that the LR guideline remains up-to-date and reflects recent changes to the CAR guideline, which come into effect in Q1 2019. Specifically, the proposed revisions to the LR guideline include:
OSFI issued the revised LR guideline for public consultation in August 2018. A summary of material comments along with OSFI's responses has been posted with the final version of the guideline.
OSFI recommends that LR guideline treatment of derivatives and securitization exposures be modified to align with amendments in the CAR guideline.
The final version of the guideline will be effective November 1, 2018 / January 1, 2019Footnote 1.
For institutions with a fiscal year ending October 31 or December 31, respectively.
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