Consultation on Pillar 3 Disclosure Guidelines for Interest Rate Risk in the Banking Book – Letter
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Today, we publish for public consultation the draft amendments to the Pillar 3 disclosure guidelines for domestic systemically important banks (D-SIBs) and small and medium-sized banks (SMSBs) on interest rate risk in the banking book (IRRBB) disclosure expectations.
Public disclosures provide transparency and promote market discipline, thereby enhancing sound risk management and contributing to a more resilient financial system.
The amendments incorporate the Basel Committee on Banking Supervision disclosure standard on interest rate risk in the banking book and align with draft amendments to Guideline B-12 – Interest Rate Risk Management. The amendments have no impact on capital or liquidity expectations for institutions in scope.
For SMSBs, the disclosure expectations are applied proportionately to reflect the nature, size, and complexity of the deposit-taking institution.
To inform our policy considerations, we are seeking your comments on the following key questions:
- What are your views on the usefulness, costs, and benefits of providing enhanced IRRBB disclosures for transparency, market discipline, and comparability?
- What are your views on the proposal to limit scope of application to Category 1 SMSBs and the proportionality approach to disclosures?
- Are there any other important considerations we should factor in as part of the policy analysis for shaping our IRRBB disclosure expectations?
Please share your comments by July 20, 2026. You can send them and any questions you may have to Pillar3-Pilier3@osfi-bsif.gc.ca.
We anticipate publishing the final amendments to the Pillar 3 disclosure guidelines on IRRBB in September 2026. The disclosure expectations are expected to come into effect for fiscal Q4 2027 reporting periods.