Office of the Superintendent of Financial Institutions
For Immediate Release
OTTAWA ─ March 30, 2020 ─ Office of the Superintendent of Financial Institutions
Today the Office of the Superintendent of Financial Institutions (OSFI)
issued direction on how federally regulated deposit taking institutions (DTIs) should treat new capital made available to small and medium sized enterprises through
recently announced government programs.
By announcing the capital treatment for loans made through these programs, OSFI is providing timely direction for institutions, financial markets and borrowers. These and other
responsive regulatory adjustments and ongoing supervisory vigilance ensure that OSFI’s guidance is appropriate for these extraordinary circumstances while remaining risk-focused and forward-looking.
OSFI will continue to look for ways that ensure its capital and liquidity requirements are fit for purpose during these extraordinary circumstances.
The capital treatment for each program is summarized as:
The loans and guarantees offered through these temporary measures fall within OSFI’s existing capital framework. Participating lenders remain responsible for their underwriting practices.
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