OSFI formally designates Canadian D-SIBs

OSFI has issued orders that legally designate Canada’s six largest banks as Domestic Systemically Important Banks (D-SIBs). The orders also set out their minimum total loss absorbing capacity requirements. This follows the coming into force of legislation that formalized OSFI’s identification of these banks as D-SIBs in March 2013.

These changes are part of the Government of Canada’s comprehensive risk management framework for D-SIBs. In the unlikely event of a failure, this formal designation would allow a bank to be recapitalized and to remain operating without requiring the input of public funds or threatening financial stability.