Letter on implementation timeline for Basel III operational risk capital requirements

OSFI is revising its capital requirements for operational risk applicable to deposit-taking institutions (DTIs), reflecting the final Basel III revisions published by the Basel Committee on Banking Supervision in December 2017. OSFI has decided that the domestic implementation of the revised Basel III operational risk capital requirements will move from Q1 2021 to Q1 2022 to coincide with the implementation of the final Basel III credit risk and leverage ratio requirements.

DTIs that previously used the Advanced Measurement Approach for operational risk capital purposes should continue to use the Standardized approach until Q1 2022. Other institutions should also continue to use the approach they are currently using (either Standardized or Basic Indicator) until Q1 2022.

Further consultation related to the domestic implementation of the final Basel III reforms for operational risk, credit risk and the leverage ratio requirements, will take place in late spring 2020.