Office of the Superintendent of Financial Institutions
For Immediate Release
October 30 2014 ─ Ottawa, Ontario ─ Office of the Superintendent of Financial Institutions
The Office of the Superintendent of Financial Institutions (OSFI) today released the Leverage Requirements Guideline. As announced earlier this year, OSFI is replacing its Asset to Capital Multiple with the Basel Committee on Banking Supervision Leverage Requirements, released in January 2014. The guideline sets out OSFI’s expectations for the implementation of these internationally agreed to rules by Canadian financial institutions. It replaces the Asset-to-Capital Multiple (ACM) measure currently contained in OSFI guidance, notably in the Capital Adequacy Requirements guideline.
“The international adoption of a consistent leverage test will help promote financial stability, competition, and comparability across institutions and across jurisdictions,” said Deputy Superintendent Mark Zelmer. “Replacing the Asset Capital Multiple test with the Basel III Leverage requirements will alleviate regulatory burden on institutions by reducing the number of calculations and disclosures, while maintaining robust supervisory oversight of leverage.”
OSFI – Public Affairs
Created in 1987 by an Act of Parliament, OSFI is the primary regulator and supervisor of federally regulated deposit-taking institutions, insurance companies, and federally regulated private pension plans. OSFI's mandate is to advance and administer a regulatory framework that contributes to public confidence in a strong, stable and competitive financial system.