Expectations on the use of Pillar II capital buffers

COVID 19 – Expectations on the use of Pillar II capital buffers for DTIs using the Standardized Approach to credit risk

OSFI continues to actively monitor the COVID-19 pandemic and is providing additional information in an industry letter on expectations surrounding capital management for deposit-taking institutions (DTIs). OSFI expects all DTIs, including those using the Standardized Approach to credit risk to consider the appropriateness of their capital management actions in the current environment.

OSFI has also updated its published FAQs for DTIs to reflect the content of this letter

OSFI continues to develop and refine its expectations for these sectors to provide flexibility and clarity so that they can effectively respond to current challenges.