Office of the Superintendent of Financial Institutions
OSFI’s CAR Guideline provides a framework for assessing the capital adequacy of banks, bank holding companies, and federally regulated trust and loan companies (collectively, referred to as “institutions”).
The CAR Guideline should be updated periodically to ensure that capital requirements continue to reflect underlying risks, developments in the financial industry, and evolving international standards.
OSFI’s objective is to ensure that the CAR Guideline remains comprehensive, fit-for-purpose, and that its requirements reflect the underlying risks facing institutions. Specifically, these revisions:
OSFI issued the draft revised CAR Guideline for public consultation in March 2021. A summary of the material comments received from industry stakeholders and an explanation of how they have been addressed has been published along with the final Guideline.
It is recommended that the CAR Guideline be updated to ensure capital requirements continue to reflect the underlying risks facing institutions as well as market developments and evolving international standards.
The implementation date of the final CAR (other than CVA risk and market risk) will be fiscal Q2-2023Footnote 2. The implementation date of the revised CVA risk and the market risk chapters of the CAR Guideline (i.e., Chapters 8 and 9) will be fiscal Q1-2024Footnote 3. OSFI will monitor adherence to the Guideline through its ongoing supervision of institutions.
Return to footnote 1
February 1, 2023 for institutions with an October 31st year end and April 1, 2023 for institutions with a December 31st year end.
Return to footnote 2
November 1, 2023 for institutions with an October 31st year end and January 1, 2024 for institutions with a December 31st year end.
Return to footnote 3