Global Systemically Important Banks – Public Disclosure Requirements
This Advisory replaces and revises a previous Advisory: Global systemically important banks – Public disclosure requirements that was released on September 11, 2015.
In July 2018, the Basel Committee on Banking Supervision (“BCBS”) issued an updated assessment methodology
1. Scope of application
This Advisory applies to federally regulated banks with a Basel III leverage ratio exposure measure (including exposures arising from insurance subsidiaries) exceeding EUR 200 billion at financial year-end
2. Frequency of reporting
2.1. The requirements outlined herein are to be considered an annual data disclosure exercise.
2.2. Public disclosure of related financial year-end data is required no later than the date of a bank’s Q1 public disclosure of shareholder financial data in the following year.
2.3. In the event that the data submitted to OSFI for subsequent remittance to the BCBS in the context of its annual data collection exercise for the assessment and identification of G-SIBs differ from the figures previously disclosed, banks should restate their figures before the final G-SIB list is published. Otherwise, restatements should be done as soon as possible.
2.4. Banks should notify OSFI of any restatement of the previously disclosed G-SIB indicators, including the new value(s), timing and rationale for the restatement, in a timely manner.
3. Availability of publicly-disclosed data
3.1 A bank may choose to disclose required information as described in Section 4 of this Advisory within its published Pillar 3 report, or within its report to shareholders. If a bank chooses to disclose the required information in the report to shareholders, it must be clearly indicated in the bank’s Pillar 3 report.
3.2 A bank's annual Pillar 3 report and all the interim Pillar 3 reports should include a reference to the website where current and previous disclosures of required information can be found.
4. Disclosure requirement
4.1. The disclosure requirement is based on the status of each bank in accordance with the annual G-SIB identification exercise.
4.2. Disclosure requirement for banks that meet the criterion for public disclosure of data as outlined in Section 1, but that have not been identified as a G-SIB by the FSB in the previous financial year
4.2.1. These banks are required to publicly disclose, at a minimum, the Canadian-dollar denominated values of the 13 indicators comprising the G-SIB assessment methodology, using the attached Reporting Template.
4.3. Disclosure requirement for banks that have been identified as G-SIBs by the FSB in the previous financial year
4.3.1. In addition to the attached Reporting Template, these banks are required to publicly disclose the Canadian-dollar denominated values of all line items in the detailed data template used by the BCBS and the FSB for the annual G-SIB identification exercise (“the BCBS template”). The BCBS template provides the full calculation of each of the 13 indicators captured in the attached Reporting Template.
4.3.2. Banks that are required to publicly disclose data as described in section 4.2 above are not precluded from disclosing the detailed data found in the BCBS template.
5. Additional disclosures
5.1. Banks should include any additional information deemed useful to facilitate understanding of the data, including how it should be interpreted within the context of the assessment methodology used by the BCBS and FSB in the annual identification of G-SIBs. Banks should indicate the financial year-end date of the information reported and the date of first public disclosure.
5.2. Regarding narrative commentary, all banks should provide discussion of the main drivers behind any material change in one or more of the 13 indicator values compared to the prior year and explain any relevant qualitative characteristic deemed necessary for understanding the quantitative data.
This information may include explanations about the use of estimates with a short explanation as regards to the method used, or mergers/modifications of the legal structure of the entity subjected to the reported data, the bucket to which the bank was allocated and changes in higher loss absorbency requirements, or reference to the BCBS’s website for data on denominators, cutoff scores and buckets.
6. Reporting Template
Key points to note about the Reporting Template are:
The template is intended to capture the values of the 13 indicators included in the BCBS FSB methodology for assessing the systemic importance of large global banks.
Financial year-end data should be reported for each indicator, except as otherwise noted in the BCBS FSB methodology.
Indicator values should be reported in Canadian dollar (CAD) either in thousands or millions. The same reporting unit must be used throughout the Reporting Template.
Indicator values should be reported for the consolidated group, in accordance with the regulatory scope of consolidation unless otherwise specified by the assessment methodology (e.g., insurance activities as they relate to certain indicators).
|Current year Value
|Comparative Year Value
|1. Cross-jurisdictional claims
|2. Cross-jurisdictional liabilities
|3. Total exposures as defined for use in the Basel III leverage ratioFootnote *
|4. Intra-financial system assetsFootnote *
|5. Intra-financial system liabilitiesFootnote *
|6. Securities outstandingFootnote *
|Substitutability / financial institution infrastructure
|7. Payments activity
|8. Assets under custody
|9. Underwritten transactions in debt and equity markets
|10. Trading Volume
|11. Notional amount of over-the-counter (OTC) derivativesFootnote *
|12. Trading and available-for-sale securities
|13. Level 3 assetsFootnote *