Guideline B-12 Interest Rate Risk Management (2027) - Letter

Today, we are publishing the final Guideline B-12 – Interest Rate Risk Management. The guideline will come into effect on November 1, 2026 or January 1, 2027 for institutions with a fiscal year ending October 31 or December 31, respectively.

We appreciate the stakeholder engagement and feedback received during the consultation period. Stakeholders were supportive of the proposed amendments and did not identify issues requiring changes. For further detail, please refer to the summary of stakeholder comments and our responses.

Revisions to Guideline B-12 compared to the current version, Guideline B-12 (2019), include:

• targeted updates in Annex 1 to reflect the revised interest rate shocks that the Basel Committee on Banking Supervision published in July 2024
• updated guidance on how institutions should consider different types of balance sheet scenarios against earnings measures
• removal of details related to public disclosures, replaced with new reference to our Pillar 3 disclosure guidelines

Stakeholders can send questions to BCLSD-DNFPLB@osfi-bsif.gc.ca.