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Table 1 Demographic assumptions
 Current reportPrevious report
2024-20252048-20492023-20242047-2048
Base populationCPP31stTable 1 Footnote aCPP31stCPP31stCPP31st
Enrolment rate (15 to 64)7.3%7.0%7.1%6.9%
Loan uptake rate51.5%50.8%48.1%49.8%
Table 1 Footnotes
Table 1 Footnote a

31st Actuarial Report on the Canada Pension Plan as at 31 December 2021

Return to table 1 footnote a referrer

BUG-0006 Tables in lists breaking

  1. The countercyclical buffer aims to ensure that banking sector capital requirements take account of the macro-financial environment in which institutions operate. It will be deployed when excess aggregate credit growth is judged to be associated with a build-up of system-wide risk to ensure the banking system has a buffer of capital to protect it against future potential losses. [Basel Framework, RBC 30.7]
  2. The countercyclical buffer regime consists, in Canada, of the following elements:

    1. OSFI, in consultation with its Senior Advisory CommitteeFootnote 14 (SAC) partners, will monitor credit growth and other indicatorsFootnote 15 that may signal a build-up of system-wide risksFootnote 16 and make an assessment of whether credit growth is excessive and is leading to the build-up of system-wide risks. Based on this assessment, a countercyclical buffer requirement, ranging from 0% to 2.5% of total risk-weighted assets,Footnote 17 will be put in place when circumstances warrant. This requirement will be released when OSFI, in consultation with its SAC partners, assesses that system-wide risks have dissipated or crystallized.

    2. Institutions with private sector credit exposures outside Canada will look at the geographic location of those exposures and calculate their consolidated countercyclical buffer requirement as a weighted average of the countercyclical buffers that are being applied in jurisdictions to which they have credit exposures.

    3. The countercyclical buffer to which the institution is subject will be implemented by way of an extension of the capital conservation buffer described in section 1.7.1. Institutions will be subject to restrictions on distributions of earnings if they breach the extended buffer.

    [Basel Framework, RBC 30.8]

  3. Institutions must meet the countercyclical buffer with CET1. Consistent with the capital conservation buffer, the CET1 ratio in this context includes amounts used to meet the 4.5% minimum CET1 requirement, but excludes any additional CET1 needed to meet the 6% Tier 1 and 8% Total Capital requirements as well as D-SIBs' minimum 21.5% TLAC requirement. [Basel Framework, RBC 30.17]
  4. Table 6 provides the minimum capital conservation ratios an institution must meet at various levels of the CET1 capital ratio.Footnote 18 [Basel Framework, RBC 30.17]
Table 6: Individual institution minimum capital conservation standards
CET1Minimum Capital Conservation Ratios (expressed as a percentage of earnings)
Within first quartile of buffer100%
Within second quartile of buffer80%
Within third quartile of buffer60%
Within fourth quartile of buffer40%
Above top of buffer0%
  1. The consolidated countercyclical buffer will be a weighted average of the buffers deployed in Canada and across BCBS member jurisdictions and selected non-member jurisdictionsFootnote 19 to which the institution has private sector credit exposures. [Basel Framework, RBC 30.14]
  2. Institutions will look at the geographic location of their private sector credit exposures and calculate their consolidated countercyclical buffer as a weighted average of the buffers that are being applied in each jurisdiction to which they have such exposures. The buffer that will apply to an institution will thus reflect the geographic composition of its portfolio of private sector credit exposures.Footnote 20 [Basel Framework, RBC 30.13]
  3. The weighting applied to the buffer in place in each jurisdiction will be the institution's credit risk RWA that relates to private sector credit exposures in that jurisdiction divided by the institution's credit risk RWA that relates to private sector credit exposures across all jurisdictions.Footnote 21 [Basel Framework, RBC 30.14]
  4. Institutions will be subject to a consolidated countercyclical buffer that varies between 0%, where no jurisdiction in which the institution has private sector credit exposures has activated a buffer, and 2.5% of total RWA.Footnote 22 The consolidated countercyclical buffer applies to consolidated total RWA (including credit, market, and operational risk) as used in the calculation of all risk-based capital ratios, consistent with it being an extension of the capital conservation buffer. [Basel Framework, RBC 30.12 FAQ1]
  5. Private sector credit exposures in this context refers to exposures to private sector counterparties which attract a credit risk capital charge in the banking book or a risk-weighted equivalent market risk charge for banks' exposures in the trading book as described in Chapter 9.

    1. If the SA is applied, the risk-weighted equivalent market risk capital charge for default risk is described in section 9.5.

    2. If the IMA is applied, the risk-weighted equivalent market risk capital charge for default risk is described in section 9.6.

    [Basel Framework, RBC 30.13 FAQ1]

  6. When considering the jurisdiction to which a private sector credit exposure relates, institutions should use an ultimate risk basis. Ultimate risk refers to the jurisdiction where the final risk liesFootnote 23 as opposed to the jurisdiction of the immediate counterparties or where the exposure is booked. [Basel Framework, RBC 30.14]
  7. The decision to activate, increase, decrease or release the countercyclical buffer will be formally communicated. The Superintendent may exempt groups of institutions, other than D-SIBs and foreign bank subsidiaries in Canada, from the countercyclical buffer requirements if the application would not meet the stated objectives of the countercyclical buffer.Footnote 24 Footnote 25 The scope of application and the rationale would be described in the OSFI communication. To give institutions time to adjust to a buffer level, OSFI will pre-announce its decision, to activate or raise the level of the countercyclical buffer, by up to 12 months but no less than 6 months. Conversely, decisions to release the countercyclical buffer will normally take effect immediately. Institutions with foreign exposures are expected to match host jurisdictions' implementation timelines unless the announcement period is shorter than 6 months in which case compliance will only be required 6 months after the host's announcement.Footnote 26 [Basel Framework, RBC 30.11]
  8. The maximum countercyclical buffer relating to foreign private sector credit exposures will be 2.5% of total RWAs.Footnote 27 Jurisdictions may choose to implement a buffer in excess of 2.5%, if deemed appropriate in their national context; in such cases the international reciprocity provisions will not apply to the additional amounts. In addition, institutions are not expected to replicate sectoral buffers or similar measures adopted by foreign jurisdictions that depart from the internationally agreed countercyclical buffer. [Basel Framework, RBC 30.9]

    Institutions must ensure that their countercyclical buffer is calculated and publicly disclosed with at least the same frequency as their minimum capital requirements. In addition, when disclosing their buffers, if any, institutions must also disclose the geographic breakdown of their private sector credit exposures used in the calculation of the buffer. [Basel Framework, RBC 30.19]

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Consultation status: Closed

Consultation closed February 18, 2026. We'll keep this draft on the site until the final guideline is released.

To review the version of this guideline currently in effect, please visit Capital Adequacy Requirements (CAR) (2026) – Chapter 3 – Operational Risk.

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Annex 3-2: Detailed Loss Event Type Classification

[Basel Framework OPE 25.17]

Event-Type Category (Level 1)Categories (Level 2)Activity Examples (Level 3)
Internal fraudDefinition: Losses due to acts of a type intended to defraud, misappropriate property or circumvent regulations, the law or company policy, excluding diversity/ discrimination events, which involves at least one internal partyUnauthorized Activity
  • Transactions not reported (intentional)
  • Transaction type unauthorized (w/monetary loss)
  • Mismarking of position (intentional)
Theft and Fraud
  • Fraud / credit fraud / worthless deposits
  • Theft / extortion / embezzlement / robbery
  • Misappropriation of assets
  • Malicious destruction of assets
  • Forgery
  • Check kiting Smuggling
  • Account take-over / impersonation / etc.
  • Tax non-compliance / evasion (wilful)
  • Bribes / kickbacks
  • Insider trading (not on firm's account)
External fraudDefinition: Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third partyTheft and Fraud
  • Theft/Robbery
  • Forgery
  • Check kiting
Systems Security
  • Hacking damage
  • Theft of information (w/monetary loss)
Employment Practices and Workplace SafetyDefinition: Losses arising from acts inconsistent with employment, health or safety laws or agreements, from payment of personal injury claims, or from diversity / discrimination eventsEmployee Relations
  • Compensation, benefit, termination issues
  • Organized labour activity
Safe Environment
  • General liability (slip and fall, etc.)
  • Employee health and safety rules events Workers compensation
Diversity and DiscriminationAll discrimination types
Clients, Products and Business PracticesDefinition: Losses arising from an unintentional or negligent failure to meet a professional obligation to specific clients (including fiduciary and suitability requirements), or from the nature or design of a product.Suitability, Disclosure and Fiduciary
  • Fiduciary breaches / guideline violations
  • Suitability / disclosure issues (KYC, etc.)
  • Retail customer disclosure violations
  • Breach of privacy
  • Aggressive sales
  • Account churning
  • Misuse of confidential information
  • Lender liability
Improper Business or Market Practices
  • Antitrust
  • Improper trade / market practices
  • Market manipulation Insider trading (on firm's account)
  • Unlicensed activity
  • Money laundering
Product FlawsProduct defects (unauthorized, etc.) Model errors
Selection, Sponsorship and Exposure
  • Failure to investigate client per guidelines
  • Exceeding client exposure limits
Advisory ActivitiesDisputes over performance of advisory activities
Damage to Physical AssetsDefinition: Losses arising from loss or damage to physical assets from natural disaster or other events.Disasters and other events
  • Natural disaster losses
  • Human losses from external sources (terrorism, vandalism)
Business disruption and system failuresDefinition: Losses arising from disruption of business or system failuresSystems
  • Hardware
  • Software
  • Telecommunications
  • Utility outage / disruptions
Execution, Delivery and Process ManagementDefinition: Losses from failed transaction processing or process management, from relations with trade counterparties and vendorsTransaction Capture, Execution and Maintenance
  • Miscommunication
  • Data entry, maintenance or loading error
  • Missed deadline or responsibility
  • Model / system misoperation
  • Accounting error / entity attribution error
  • Other task misperformance
  • Delivery failure
  • Collateral management failure
  • Reference Data Maintenance
Monitoring and Reporting
  • Failed mandatory reporting obligation
  • Inaccurate external report (loss incurred)
Customer Intake and Documentation
  • Client permissions / disclaimers missing
  • Legal documents missing / incomplete
Customer / Client Account Management
  • Unapproved access given to accounts
  • Incorrect client records (loss incurred)
  • Negligent loss or damage of client assets
Trade counterparties
  • Non-client counterparty misperformance
  • Miscellaneous non-client counterparty disputes
Vendors and suppliers
  • Outsourcing
  • Vendor disputes

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Amendment control log
Amendment numberEffective reporting dateDescription
12007 Q4New
22008 Q1

Instructions:

  • Add:Footnotes 1, 4 and 16Wording “if not tranched”Clarification of Undrawn commitmentsNote under Repo-style TransactionNote under Other off-balance sheetWording “and Other rated”Additional instructions under Schedule 3 – Capital ElementsAdditional instructions under Columns for “Before CRM”Additional instructions under third paragraphAdditional instructions under Section D – Early AmortizationAdditional instructions under Treatment of GuaranteesAdditional instructions under Columns for “Before CRM”Additional instructions under Columns for “After CRM”Additional instructions under Schedule 35 – Credit Risk-weighted AssetsAdditional instructions under Footnote 7Additional instructions under Schedule 36 – PD/LGD Approach for IRB EquityAdditional instructions under Section B – Securitization exposures subject to ratings-based or internal assessment approachSection C – Advanced Measurement ApproachAdditional instructions under Schedule 44 – Gross Exposures by Original Obligor and by Ultimate GuarantorAdditional instructions under Credit Risk sectionAdditional instructions under Scope of the approachAdditional instructions under Timing
  • Delete:Instructions under Exposure Classification and Credit Risk Mitigation (CRM)Wording (e.g. 1.06)Wording “using the substitution approach for guarantees”Wording “CAR”
  • Change:SMEs (treated as Other Retail) changed to SBEs (treated as Other Retail)Reference to Guideline A-3The level of the scaling factor will be incorporated into the guidelines changed to The level of the scaling factor is 1.06Wording Decrease in net exposure changed to Adjustment to net exposureModified instructions under Columns for “Adjustments for CRM”One decimal place to two decimal places under (ii) Internal Model Method
32009 Q1

Instructions:

  • Add:Purpose; Statutory; Application; Publication; Contact Person; Reporting Dates; Where to SubmitInstructions for BCAR Short FormAdditional instructions under Schedule 4 – Allowance for ImpairmentInstructions for Market-based ApproachesReference to section 3.6Additional instructions under (i) Current Exposure MethodAdditional instructions under (ii) Internal Model Method
  • Change:Modified instructions for clarity under Schedule 35 – Credit Risk-weighted AssetsModified instructions under Sections A and B – Basic Indicator and Standardized ApproachedAnnex instructions modified re implementation date and references
42010 Q1

Instructions:

  • Add:Additional instructions under Residential Mortgage re Reverse MortgagesAdditional “ * ” under Undrawn commitments and related instructions below tableAdditional instructions under Schedule 3, first paragraphAdditional instructions under Risk-weighted AssetsAdditional instructions under Expected Loss AmountAdditional instructions under Risk-weighted AssetsAdditional instructions under Expected Loss AmountInstructions for Unrealized gains on derivativesAdditional instructions under Footnote 9
  • Change:Modified instructions under Undrawn commitmentsModified instructions under Schedule 3, second paragraphInstructions modified under Guaranteed Exposure, by Ultimate Guarantor
  • Delete:Last sentence from the first paragraph under Sections A and B - Basic Indicator and Standardized Approaches
52011 Q1

Instructions:

Multiple changes were made to the instructions to accommodate IFRS.

  • Change:Page references updatedInstructions modified in regards to Banking versus Trading Book
  • Add:Instructions to accommodate separate reporting of securitization exposuresInstructions regarding introduction of Stressed Value at Risk components
62012 Q1

Instructions:

  • Add:Additional instructions under BCAR Short FormAdditional instructions under Schedule 2 – Summary of Risk-weighted AssetsInstructions under IRB Methodology – Eligible AllowanceInstructions under IRB Methodology – Expected Loss AmountAdditional instructions under Credit Risk-weighted Assets under IRB Approach - General MethodologyFootnote 4Instructions under Wholesale IRB Exposures not subject to Double Default FrameworkInstructions under Columns for “Before CRM”Memo Item for AIRB-approved Institutions using LGD Adjustment to Reflect GuaranteesMemo Item for Institutions using LGD Adjustment to Reflect GuaranteesInstructions under Schedule 36 - General MethodologyInstructions under Section B - General MethodologyInstructions for Sections C and D
  • Change:Instructions modified under Corporate Exposure ClassInstructions modified under Past Due Loans and Defaulted ExposuresInstructions modified under Banking Versus Trading BookInstructions modified under Schedule 3 – Capital ElementsInstructions modified under Excess allowanceInstructions modified under Schedule 14 & 37 - General MethodologyFIRB and AIRB Exposures Subject to Double Default Framework changed to Wholesale IRB Exposures Subject to Double Default FrameworkInstructions under Columns for “Adjustments for CRM”Instructions under Schedule 29Instructions under Unallocated accrued interest and other miscellaneous receivablesInstructions under Schedule 39Instructions under Section AReferences under Section A – Internal Model RequirementsInstructions under Incremental Risk ChargeInstructions under Modelled Comprehensive Risk MeasureReferences under Section B – Standardized Approach RequirementsInstructions for Sections B(ii)(a) to B(ii)(c)
  • Delete:Footnote 1‘Pre’ Q1 2012 related instructions under Section BReference to Schedules 15 to 21Instructions under Section B - Securitization exposures subject to ratings-based or internal assessment approachSchedule 42 (Pre Q1 2012 instructions)Annex - Interim Approach to Reporting
72013 Q1

Instructions:

  • Change:Updated all CAR guideline referencesInstructions under Basis of Measurement and Reporting UnitsInstructions under Repo-style TransactionInstructions under OTC DerivativesInstructions under Asses to Capital MultipleInstructions under Schedule 3 – Capital ElementsInstructions under Schedule 4 – Allowance for Impairment: Capital Treatment and General MethodologyGeneral allowance changes to collective allowanceSpecific allowances changes to individual allowancesInstructions under Schedule 14 – General MethodologyInstructions and title for Section A – Select originator securitization exposuresInstructions under Section CInstructions under Redistribution of exposures for guarantees and credit derivativesInstructions under Schedule 37 – General MethodologyInstructions under Section C – Unrated Exposures – non IAAInstructions under Summary SectionInstructions under Unsettled non-DvP tradesInstructions under Section A – All Derivatives – Notional Principal AmountSection B – OTC Derivatives changes to Section B – Counterparty Credit Risk Exposure for Default Risk Capital RequirementsInstructions under Section B – General MethodologyInstructions under (ii) Internal Model MethodInstructions under Section B(ii) Interest Rate Position Specific Risk – Tranched products & hedgesInstructions under Instructions for Sections B(ii)(a) to B(ii)(c) during the interim treatment period from Q1 2012 to Q4 2013Instructions under Instructions for Sections B(ii)(a) to B(ii)(c) to take effect Q1 2014 (after the interim treatment period ends)Instructions under Section C – Total Minimum Capital Charge for Market Risk (not including deductions)Instructions under Section D – Valuation Adjustments for Less Liquid PositionsInstructions under Section C – Advanced Measurement ApproachInstructions under Adjustment to reflect differences in balance sheet exposure amounts resulting from measurement bases used for accounting purposes
  • Delete:One sentence under General InstructionsAddback of select 50/50 securitization deductionsInstructions under Schedule 36 – General Methodology
  • Add:1A Ratios, Capital, and Risk-weighted Assets on Transitional Basis3A Qualifying Capital Issued Out of SubsidiariesBasis of Basel III CalculationsSchedule 1A – Ratios, Capital and Risk-weighted Assets on Transitional BasisCredit or market risk-weighted assets calculated on the deducted portion of non-significant investments in financialsSection A – Calculation of Total CapitalSection B – Calculation of Basel III deduction for investments in the capital of banking; financial and insurance entities where the reporting FI does not have a significant investment in the entitySection C – Calculation of Basel III deduction for significant investments in common equity; deferred tax assets arising from temporary differences; and mortgage servicing rightsSection D – Phase-out of non-qualifying capital instrumentsSection E – Memo ItemsSchedule 3A – Qualifying Capital Issued Out of SubsidiariesInstructions under Net collective allowance allocated to standardized and IRB portfoliosInstructions under IRB Methodology – Eligible AllowanceInstructions under Columns for “Before CRM”Instructions under Weighted Ave. MaturityInstructions under Weighted Ave. Maturity of credit protectionSection C – Credit Valuation Adjustments (CVA) on Bilateral OTC DerivativesSection D – Exposures to Qualifying Central CounterpartiesSection E – Default Fund Contributions to Non-Qualifying Central CounterpartiesInstructions under Schedule 40 – Derivative ContractsInstructions under (i) Current Exposure MethodDeducted portion of non-significant investments in financialsAOCI, CCP, CETI and CVA under Abbreviations
82014 Q1

Instructions:

  • Change:Instructions under BCAR Short FormInstructions under Basis of Measurement and Reporting UnitsInstructions under Schedule 1A – Ratios, Capital and Risk-weighted Assets on Transitional Basis – Section BInstructions under Adjustment to IRB risk-weighted assets for scaling factorInstructions under Section D – Phase-out of non-qualifying capital instrumentsInstructions under footnote 13Instructions under Section B – Counterparty Credit Risk Exposure for Default Risk Capital Requirements – (i) Current Exposure Method, and (ii) Internal Model MethodInstructions under Section B(ii)(a) Non-correlation Trading Portfolios - Net position – summation of net long and absolute value of net short positionsInstructions under Section B(ii)(c) Basket Credit Default Swaps
  • Add:Instructions under Section 1 - Adjustment (to risk-weighted assets) for floorInstructions under Section 2 – Credit valuation adjustment grandfathering phase-inFootnotes 4 and 9Instructions under Section B – Calculation of Basel III deduction for investments in the capital of banking, financial and insurance entities where the reporting FI does not have a significant investment in the entityInstructions under Redistribution of exposures for guarantees and credit derivativesInstructions under Memo Item for AIRB-approved Institutions using LGD Adjustment to Reflect GuaranteesInstructions for Adjustments to gross balances to reflect balance sheet assetsInstructions under Section C – Credit Valuation Adjustments (CVA) on Bilateral OTC DerivativesInstructions under Multiplier LevelInstructions under Section A(ii) Stressed Value at Risk Component
  • Delete:Footnote 4“Note:….” under Section CParagraph under “Unrated” - Section B(ii)(a) Non-correlation Trading Portfolios - Net position – summation of net long and absolute value of net short positionsInstructions for Sections B(ii)(a) to B(ii)(c) to take effect Q1 2014 (after the interim treatment period ends)
92015 Q1

Instructions:

  • Add:Additional instructions under Schedule 1 - Ratio CalculationsAdditional instructions under Schedule 3 ‑ Capital ElementsAdditional instructions under Schedule 4 ‑ Allowance for Impairment: Capital Treatment
  • Change:Instructions replaced under Schedule 1 - Assets to Capital MultiplePage number references updatedDatapoint address reference updatedInstructions updated under Section D – Valuation Adjustments for Less Liquid PositionsInstructions under Schedule 45 - General Methodology
102017 Q1

Instructions:

  • Change:Instructions under PurposeEmail address regarding BCAR short form notificationInstructions under Basis of Measurement and Reporting UnitsInstructions under Calculation versus Reporting DetailInstructions under Credit Risk and Schedule CompletionInstructions under Residential MortgageSchedule 1 – Ratio and Assets to Capital Multiple Calculations changes to Schedule 1 – Ratio CalculationsInstructions under Credit valuation adjustment grandfathering phase-inInstructions under Schedule 3 – Capital ElementsInstructions under Schedule 4, General MethodologyInstructions under Notional Principal Amount, and Gross exposure (Exposure at Default) before CRMInstructions under Redistribution of exposures for guarantees and credit derivativesInstructions under Schedule 35, General Methodology
  • Delete:All references to paragraph numbersAssets to Capital Multiple
  • Add:Cooperative retail associations under General InstructionsMemo item: Institution’s own internal capital targetsInstructions under Redistribution of net exposures for guarantees & credit derivatives, and collateralSchedule 12 – Banking Book Equity under the Standardized ApproachSchedules 30 to 31 – Credit Risk weighted Assets under the IRB Approach for Retail Residential Mortgage and HELOCEquity investment in fundsInstructions under (ii) Internal Model MethodSchedule 46 – Countercyclical BufferAbbreviation CCyB
112018 Q1

Instructions:

  • Add:Instructions under PurposeInstructions under General InstructionsInstructions under Exposure Classification and Credit Risk Mitigation (CRM)Instructions under Banking Versus Trading BookInstructions for 80% Threshold calculation for IRB banksInstructions under Schedule 3 – Capital and TLAC ElementsInstructions under Section A – Calculation of Total Capital and TLAC AvailableInstructions under Section B – Calculation of Basel III deduction for investments in the capital of banking, financial and insurance entities where the reporting FI does not have a significant investment in the entityInstructions under Schedules 5 to 13 – Credit Risk-weighted Assets under the Standardized ApproachInstructions under Increase in Exposure for Guarantees, Credit DerivativesInstructions under Redistribution of exposures for guarantees and credit derivativesSchedules 22A, 26, 30 and 31 – Credit Risk weighted Assets under the IRB Approach for Insured Retail Residential Mortgage, HELOCSchedules 22, 26, 30, 32 and 34 – Credit Risk weighted Assets under the IRB Approach for Insured exposures subject to DLGD floorInstructions under Schedule 35 – Credit Risk-weighted Assets under the IRB Approach for EquityInstructions under Section B - (i) Current Exposure MethodSchedule 40A – Derivative ContractsFootnotes 14, 15 and 16RWA for guaranteed exposure, by Ultimate GuarantorInstructions under CCyB add-on rate (M46)Instructions under Weighted buffer add-on (M47)SA-CCR Standardized approach to counterparty credit risk
  • Change:Instructions under Schedule 1 – Ratio CalculationsInstructions under Contact PersonInstructions under Calculation versus Reporting DetailSchedule 3 – Capital Elements changes to Schedule 3 – Capital and TLAC ElementsSection A – Calculation of Total Capital changes to Section A – Calculation of Total Capital and TLAC AvailableWording change under Schedules 14 and 37 – Securitization – Credit Risk TreatmentWording change under Schedule 14 – Standardized Approach for Securitization – Credit Risk TreatmentSchedules 30 to 31 – Credit Risk weighted Assets under the IRB Approach for Retail Residential Mortgage and HELOC changes to Schedules 30, 31, 32 and 34 – Credit Risk weighted Assets under the IRB Approach for Retail Residential Mortgage, HELOC, Other Retail and SBE treated as Other RetailWording change under Summary SectionWording changes under Schedule 45 – Balance Sheet Coverage by Risk Type and Reconciliation to Consolidated Balance Sheet
  • Delete/Change:Under BCAR short form, schedule 1A has been deleted and schedule 3 is renamed to Capital and TLAC ElementsInstructions under Schedule 4 – Allowance for Impairment: Capital Treatment
  • Delete:Schedule 1A – Ratios, Capital and Risk-weighted Assets on Transitional BasisWording under Section E – Memo items

Return Template:

  • Change:Collective allowance to Stage 1 and 2 allowances under Schedules 1, 3, 4, 5-12, 14, 37, 38, 41 and 45Individual allowance to Stage 3 allowance under Schedules 1, 3, 4, 5-12, 14, 37, 38, 41 and 45
  • Add:TLAC ratios under Schedules 1 and 3TLAC holdings/instruments (multiple DPAs added) under Schedules 1 and 3Membership shares and Other qualifying CET1 instruments for Federal credit unions under Schedule 3Memo items under Schedules 9, 22A, 26, 30, 31, 32 and 34Breakdown of drawn/undrawn exposures under Schedules 35 and 45Column “Other contracts” under Schedule 40Schedule 40AColumns (K-N) “RWA for guaranteed exposure, by ultimate guarantor” under Schedule 44
  • Delete:Schedule 1ADPA 1574 under Schedule 3
122019 Q1

Instructions:

  • Delete:Instructions under Basis of Basel III CalculationsInstructions under Credit valuation adjustment grandfathering phase-inSection D – Early Amortization under Schedule 37Section B – (i) Current Exposure Method under Schedule 40Schedule 40A – Derivative Contracts
  • Add:Instructions under 80% Threshold calculation for IRB banks (ii) Risk-weighted assetsSchedule 2A – Summary of risk-weighted assets under the capital floorInstructions for Transitional arrangementsSection B – SEC-IRBA Exposures under Schedule 37Redistribution of net exposures for guarantees & credit derivatives, and collateral under Schedule 37 – Section CAdjustment to net exposure for collateral under the comprehensive approach under Schedule 37 – Section CWeighted Average Maturity under Schedule 37 – Section CRight of use asset under Schedule 38Instructions under Schedule 38 - Section D – Exposures to Qualifying Central CounterpartiesInstructions under Schedule 40 - Section A – All Derivatives – Notional Principal AmountSection B - (i) Standardized Approach for counterparty credit risk under Schedule 40Section A(iii) Risks not in VaR Component under Schedule 42
  • Change:Instructions under Schedule 1 – Ratio CalculationsInstructions under Schedule 4 - IRB Methodology – Eligible Allowance (including partial write-offs)Instructions under Schedule 4 - Net Stage 1 and Stage 2 allowance allocated to standardized and IRB portfoliosInstructions under Schedules 5 to 13 - Columns for “Before CRM”Instructions under Schedule 14 – Standardized Approach for Securitization – Credit Risk TreatmentInstructions under Schedules 14 and 37 – Securitization – Credit Risk TreatmentSchedule 37 – IRB Approach for Securitization – Credit Risk Treatment to Schedule 37 – Securitization exposures subject to IRB approval – Credit Risk Treatment and related instructionsSection B – Securitization exposures subject to ratings-based or internal assessment approach to Section C – Securitization exposures subject to the internal assessment approach (IAA) and related instructionsSection C – Unrated Exposures – non IAA to Section D – Exposures subject to caps based on KIRBInstructions under Schedule 37 - Memo itemsInstructions under Schedule 40 - Section B – General MethodologyInstructions under Schedule 41 - Securitization Exposures

Return Template:

  • Change:Wording under rows 6, 7, 8, 32, 33, 34, 37, 38, 39, 48 under Schedule 1DPAs 1188, 1012 and 1016 moved to Schedule 2A under Schedule 1Wording under row 74 under Schedule 2Calculation reference updated under column (M47) under Schedule 46
  • Add:DPAs 1200, 1201 and 1202 under Schedule 1Schedule 2ALine 716 under Drawn (501) under Schedule 9Right of use asset (row 27) under Schedule 38Footnote (v) under Schedule 38Trade Exposure and Default Fund – Where RWA cap is binding (rows 137-140) under Schedule 38DPA 7506 under Schedule 42
  • Delete:DPAs 1169, 1170, 1171, 1172, 1173, 1174, 1775, 1776, 1177, 1010, 1011, 1013, 1014 and 1016 under Schedule 1DPAs 1473, 1474, 1475, 1476, 1477, 1478 and 1479 under Schedule 2DPA 1730 under Schedule 3References under DPAs 1731 and 1732 under Schedule 3Columns (M2) and (M5) greyed out under the OTC Derivatives (504) lines under Schedules 22A, 22B, 23A, 23B, 24A, 24B, 25A, 25B, 26, 27, 28, 32 and 34Sub-heading “Risk-Sensitive Waterfall Approach” under Section D under Schedule 38Column “Gross Exposure” under Section D under Schedule 38Alternative Approach (rows 142-156) under Schedule 38Columns “Risk Weight” and “Risk-weighted Assets” greyed out under rows 126 and 127 under Schedule 38Removal of each of the sections under IMM for “collateral is not reflected in EAD” as this was for the Shortcut method which is no longer permitted under Schedule 40DPA 4801 under Schedule 40Schedule 40A
  • Add/Delete:Implementation of the revised securitization framework: Breakdown into STC, non-STC and resecuritization under Schedules 14, 37 and 41As a result of the implementation of SA-CCR, removal of current DPAs for precious metal and other commodities and addition of new DPAs for commodities in the section A under Schedule 40
132020 Q1

Instructions:

  • Delete:Instructions under Schedule 1 – Ratio CalculationsInstructions under Schedules 14 and 37 - Transitional arrangementsSection C – Advanced Measurement Approach under Schedule 43
  • Add:Instructions under Schedule 3 – Capital and TLAC ElementsInstructions under Schedule 4 - Net Stage 1 and Stage 2 allowance allocated to standardized and IRB portfoliosInstructions under Schedule 4 - IRB Methodology – Eligible Allowance (including partial write-offs)Instructions under Schedule 40 – Section B - (i) Standardized Approach for counterparty credit riskFootnote 13Instructions under Schedule 44 - RWA for guaranteed exposure, by Ultimate Guarantor
  • Change:Wording under footnotes 9 and 10Instructions under Schedule 2A – Summary of risk-weighted assets under the capital floorInstructions under Schedule 43 – General Methodology

Return Template:

  • Delete:DPA 1456 under Schedule 2DPA 3101 under Schedule 14DPA 5613 under Schedule 37All DPAs under “Section C – Advanced Measurement Approach” greyed out under Schedule 43
  • Add:DPA 1198 under Schedule 2AMemo: Capital floor credit risk-weighted assets by ultimate guarantor (16 DPAs) under Schedule 2ADPA 1501 under Schedule 3Memo: Internal allocation of Stage 1 and Stage 2 allowance (69 DPAs) under Schedule 4Column “Incomplete acquisitions and dispositions” under Memo Item and footnote *** under Schedule 38Column “RWA for Exposure Not Guaranteed” under Schedule 44DPA 8929 under Schedule 45
  • Change:Risk weight under row 61 under Schedule 37Wording under rows 19, 22, 25, 50 and 53 under Schedule 41Wording under DPA 8927 under Schedule 45
142020 Q4

Instructions:

  • Add:Memo item 2: Capital ratios without Expected Credit Loss (ECL) Transitional Arrangements under Schedule 1ECL Transitional Arrangements under Schedule 4Section E – Summary under Schedule 14Section F – Memo items under Schedule 14
  • Change:Instructions under Schedule 4 - General MethodologyInstructions under Schedules 14 and 37 – Securitization – Credit Risk TreatmentInstructions under Schedule 37 – General MethodologySummary Section changed to Section E – Summary under Schedule 37 and related instructionsMemo items changed to Section F – Memo items under Schedule 37 and related instructions

Return Template:

  • Add:Memo item – Capital ratios without Expected Credit Loss (ECL) Transitional Arrangements under Schedule 1DPAs 1503 and 1504 under Schedule 3ECL Transitional Arrangements under Schedule 4
  • Change:Output Floor to Capital Floor under Schedule 2AWording under DPAs 1612 and 1613 under Schedule 3All line references updated under Schedule 3Wording under DPA 2602 under Schedule 4Wording under DPA 3704 under Schedule 37
  • Delete:DPAs 4758 and 4759 under Schedule 37
152021 Q4

Instructions:

  • Change:Instructions under Schedule 42 - Section A(iii) Risks not in VaR Component

Return Template:

  • No changes made
162023 Q2

A comprehensive review of the BCAR instructions and return template was performed in 2021/22. Significant changes have been made to the Q2 2023 BCAR return template and instructions. All readers are encouraged to completely review the 2023 edition.

172024 Q2

Instructions:

  • Add:** for Residential Real Estate and Residential Real Estate Exposures under 2023 BCAR Exposure ClassCrypto-asset ExposuresInstructions for Section A – Calculation of Total Capital and TLAC Available under Schedule 20.010PMI Backstops under 40 Series SchedulesJunior Liens 1.25 Multiplier under 40 Series SchedulesBA-CBA, DRC, IMA, PMI, RRAO and SA-CVA under Abbreviations
  • Change:Instructions under Schedule 10.030 – Summary of Capital Floor RWAsInstructions for Schedule 80.010 – Credit Valuation Adjustments (CVA) Risk-Weighted AssetsInstructions for Schedule 90.010 – Market Risk
  • Delete:Instructions for Market Risk section under Schedule 10.070Instructions for Memo Item for Institutions using LGD Adjustment to Reflect Guarantees under Schedules 50.160 to 50.210VaR under Abbreviations

Return Template:

  • Add:DPAs 10525, 10526 and 10527 under Schedule 10.050DPAs 10892 to 10908 under Schedule 10.080DPAs 17000 to 17014 under Schedule 10.090DPAs 12607, 12608 and 12609 under Schedule 20.03085% Unrated (759) Risk weight under Schedules 40.100 and 70.010DPAs 13983 and 13984 under Schedule 40.120Drawn (501) Risk weight – 55% PMI Backstop (811), 77% PMI Backstop (812), 88% PMI Backstop (813), 154% PMI Backstop (816), 165% PMI Backstop (817), 187% PMI Backstop (818) and Junior Liens 1.25 Multiplier (820) under Schedule 40.190Undrawn Commitments (502) Risk weight – 44% PMI Backstop (795) to 220% PMI Backstop (787), 55% PMI Backstop (811), 77% PMI Backstop (812), 88% PMI Backstop (813), 154% PMI Backstop (816), 165% PMI Backstop (817), 187% PMI Backstop (818) and Junior Liens 1.25 Multiplier (820) under Schedule 40.190Drawn (501) Risk weight – 55% PMI Backstop (811), 77% PMI Backstop (812), 88% PMI Backstop (813), 154% PMI Backstop (816), 165% PMI Backstop (817), 187% PMI Backstop (818) and Junior Liens 1.25 Multiplier (820) under Schedule 40.200Undrawn Commitments (502) Risk weight – 44% PMI Backstop (795) to 330% PMI Backstop (787), 55% PMI Backstop (811), 77% PMI Backstop (812), 88% PMI Backstop (813), 154% PMI Backstop (816), 165% PMI Backstop (817), 187% PMI Backstop (818) and Junior Liens 1.25 Multiplier (820) under Schedule 40.200Drawn (501) Risk weight –77% PMI Backstop (812), 99% PMI Backstop (814), 132% PMI Backstop (815), 165% PMI Backstop (817), 231% PMI Backstop (819) and Junior Liens 1.25 Multiplier (820) under Schedules 40.210, 40.220, 40.220a and 40.220bUndrawn Commitments (502) Risk weight – 66% PMI Backstop (798) to 330% PMI Backstop (791), 77% PMI Backstop (812), 99% PMI Backstop (814), 132% PMI Backstop (815), 165% PMI Backstop (817), 231% PMI Backstop (819) and Junior Liens 1.25 Multiplier (820) under Schedules 40.210, 40.220, 40.220a and 40.220bDrawn (501) and Undrawn Commitments (502) Risk weight – Junior Liens 1.25 Multiplier (820) under Schedules 40.230 and 40.240300% (821) Risk weight under Schedule 40.250
  • Change:Incremental Risk Weight Multiplier to Risk Weight 105% under Schedule 10.090Reference for DPAs 1692 and 1634 updated under Schedule 20.010Reference for DPA 1998 under Schedule 20.030Unshaded the 0% Rated (801) Risk-weighted Assets (M7) under Schedules 40.010 and 40.020Unshaded cell 0% Rated (801) National Principal Amount (M12) for Undrawn Commitments, OTC Derivatives and Other off-balance sheet under Schedule 40.030Memo item for AIRB Institutions using PD substitution for Insured mortgages moved from Schedule 50.010 to 50.020Memo item for AIRB Institutions using PD substitution for Insured mortgages – DLGD floor moved from Schedule 50.010 to 50.020Existing information/DPAs on Schedules 80.010 and 90.010 deleted and replaced with all new information/DPAs
  • Delete:DPAs 10184 and 10185 under Schedule 10.020DPAs 10367 and 10431 under Schedule 10.030Drawn (501) Risk weight - 330% PMI Backstop (791) under Schedule 40.190Drawn (501) Risk weight – 44% PMI Backstop (795) under Schedules 40.210, 40.220, 40.220a and 40.220bDrawn (501) Risk weight – 44% PMI Backstop (795), 66% PMI Backstop (798), 110% PMI Backstop (807), 220% PMI Backstop (787) and 330% PMI Backstop (791) under Schedules 40.230 and 40.240
182025 Q1

Instructions:

  • Change:Instructions under Contact PersonExposure calculations under General InstructionsInstructions under Schedule 10.010, Ratio CalculationsInstructions under Schedule 10.030, Summary of Capital Floor RWAs
  • Delete:Last paragraph under Schedule 90.010, Section D

Return Template:

  • Add:Countries Armenia, Chile, Czech Republic, Denmark and Philippines under Schedules 10.040 and 10.041New DPA 16462 under Schedule 20.01050% Base Unrated (822) for Drawn (501), Undrawn Commitments (502), Repo-style Transactions (503), OTC Derivatives (504) and Other off-balance sheet (505) under Schedules 40.040 and 40.06044% PMI Backstop (795), 66% PMI Backstop (798), 110% PMI Backstop (807), 220% PMI Backstop (787) and 330% PMI Backstop (791) under Undrawn Commitments (502) under Schedule 40.06020% Short-term rated (766), 50% Short-term rated (767). 100% Short-term rated (824) and 150% Short-term rated (768) under Schedules 40.070, 40.080, 40.090 and 40.100OTC Derivatives (504) under Schedule 40.180Total (500) under Memo Item for IRB Institutions Using LGD Adjustment to Reflect Guarantees under Schedule 50.020New DPA 16128 under Schedule 80.010New sections High Correlation Scenario, Medium Correlation Scenario and Low Correlation Scenario under Schedule 90.010
  • Delete:Country Russia under Schedules 10.040 and 10.041DPAs 15620 to 15659 under Schedule 10.060
  • Change:Label for DPA 1586 under Schedule 20.010Formula for DPA 13212 under Schedule 30.010Sub-title Capital requirements for netting sets carved out that use reduced BA-CBA changes to Capital requirements for netting sets carved out that use full BA-CBA under Schedule 80.010Formula for DPA 16124 under Schedule 80.010Labels General interest rate risk (GIRR) changes to General interest rate risk (GIRR): non-IRT under Sections B and C under Schedule 90.010Formula for DPAs 16320 and 16420 under Schedule 90.010
192026 Q1

Instructions:

  • Add:A breakdown of corporate exposures by size was addedClarification on how to distinguish and report Board-approved versus management-level capital targets was added under Schedule 10.010 – Ratio CalculationsGuidance was added on aligning blank, zero, and non-zero values between schedules 30.010 to 90.010 and the corresponding DPAs in summary schedules 10.020 or 10.030Descriptions on Schedule 10.100 – Summary of Crypto-asset Exposures was addedAn obsolete paragraph regarding the interim approach to cryptoassets was removedClarification on breakdowns of securitization exposures into synthetic and traditional was added under Schedule 60.010 and Schedule 60.020Crypto risk(Group 2a) was added under Section B(i) – Sensitivities-based method under Schedule 90.010Clarification on the requirement to report additional SA capital charges for FVA hedges not exempt from the market risk framework was added under Schedule 90.010
  • Change:Statement was added confirming the capital floor will remain at 67.5% until further notice, with at least two years’ advance notice before any future increaseDetailed list of line items from schedule 10.020 to be excluded from the calculation of private sector credit exposures was added, replacing the previous general exclusions.A reference paragraph 274, CAR Chapter 4 was updatedClarification was added that the IRB threshold in section 6.5.2.3 applies when 95% or more of underlying exposures are IRB, rather than strictly 95%A reference to CAR, Chapter 6, section 6.2.1.12 was updated to section 6.2.1.13Paragraph references to CAR, Chapter 9 were updated
  • Delete:Reference to DPA 1532 on Schedule 20.00 was deleted under Schdeule 10.070

Return Template:

  • Add:DPAs 17240 & 17241 to schedule 10.020Breakdown of institution's own internal capital and TLAC targets into its board and management targets under Schedule 10.010A new schedule was added - Summary of Crypto-asset Exposures under Schedule 10.100Schedule 10.100 was updated to reflect the October 29th, 2025 Group 2 crypto-asset exposure limit increasePlaceholders were added under Schedule 20.010Adjusted Common Equity Tier 1 Capital after Allocated, Individual, and Basket Threshold Deductions was added under Schedule 20.010Breakdowns of Subtotal - Senior and Non-senior non-STC transactions were added under Schedule 60.010A breakdown of the Total rated exposures was added under Schedule 60.010Breakdowns of Subtotal- non-STC transactions and Subtotal-Resecuritization transactions were added (Panel C(i)) under Schedule 60.010Originator synthetic transaction for other unrated exposures was added under Schedule 60.010A breakdown of Total unrated exposures was added under Schedule 60.010Originator synthetic transactions for Senior exposures measured under the look-through approach was added under Schedule 60.010Originator synthetic transactions for Exposures measured under the overall cap was added under Schedule 60.010A breakdown of the Total exposures subject to risk weight caps was added under Schedule 60.010A table for originator senior synthetic transactions was added under Schedule 60.020A table for originator non-senior synthetic transactions was added under Schedule 60.020A line for originator synthetic transactions under model risk add-on RWA was added under Schedule 60.020A breakdown of subtotal-SEC-IRBA exposures was added under Schedule 60.020A breakdown of subtotal-IAA exposures under non-senior Non-STC transactions was added under Schedule 60.020Lines for originator synthetic transactions and investor synthetic transactions were added under Schedule 60.020RWAs for securitized assets - measured under SEC-IRBA/SEC-IAA were added under Schedule 60.020A new column for Crypto contracts was added under Schedule 70.030Lines for crypto-asset risk were added under Schedule 90.010A line for 'SA capital charge for Funding Valuation Adjustments hedges of the funding spread that are not exempt' was added under Schedule 90.010
  • Change:Description for DPA 8381 was revised under Schedule 30.010Footnote - description was revised under Schedule 30.010Footnote - description was revised under Schedule 90.010

BUG-0016 figcaption being stripped from figure.

Example:

An institution acquired a business two years ago (i.e. at the beginning of Year 9 in Schedule B(i)). Year 9 and Year 10 in the institution's BI calculation already include income and expenses of the acquired business, since it was consolidated into the institution starting in Year 9. For Year 8, the acquired business was not consolidated into the institution's P3 and M4 Return, and therefore income from the acquired business is not included in the calculation of the BI for Year 8.

In this case, the institution should include an Adjustment for Mergers and Acquisitions by calculating a BI using actual financial data of the acquired business for Year 8, and zeros for Years 9 and 10.

For example, if the acquired business had $100MM of interest income, $80MM of interest expense and $2MM in Dividend Income in Year 8, and $2B in interest-earning assets at the end of Year 8, the ILDC to calculate the BI for the purposes of the Adjustment for Mergers and Acquisitions, should be calculated as follows.

$MMYear 8Year 9Year 103-Year Average
Interest-Earning Assets2,000,00000666,667
2.25% of 3-year average of Interest-Earning Assetsno datano datano data15,000
Interest Income100,00000no data
Interest Expense80,00000no data
Absolute Value of Net Interest Income20,000006,667
Dividend Income2,00000667
Interest, Lease and Dividend Component (ILDC)no datano datano data7,334

BUG-0017 lists being stripped from footnote dd.

BCAR Exposure ClassCAR Guideline Reference
Sovereigns and Central BanksSections 4.1.1 and 5.2.1(ii)
Public Service Entities (PSEs)Sections 4.1.2 and 5.2.1(iii)
Multilateral Development Banks (MDBs)Sections 4.1.3 and 5.2.1(ii)
Banks (excluding Covered Bonds)Section 4.1.4 and 5.2.1(iv)
Covered BondsSections 4.1.5 and 5.2.1(iv)
CorporateBanking Book Exposure Classes - Table footnote *Sections 4.1.7 and 5.2.1(i)
Specialized LendingSections 4.1.7 and 5.2.1(i)
Subordinated Debt, Equity and Other Capital InstrumentsSection 4.1.8 and 5.2.1(iv)
Regulatory RetailSections 4.1.9 and 5.2.1(v)
Non-regulatory RetailSections 4.1.9 and 5.2.1(v)
Residential Real EstateBanking Book Exposure Classes - Table footnote **Sections 4.1.11 and 5.2.1(v)
Residential Real Estate Exposures that do not meet expectations related to B-20Banking Book Exposure Classes - Table footnote **Sections 4.1.11 and 5.2.1(v)
Commercial Real Estate (CRE)

Sections 4.1.12 and 5.2.1(i)

An exposure secured by any immovable property that is not residential real estate.

Subcategories:

  • General CRE – an exposure secured by any immovable property that is not residential real estate. These exposures do not meet the criteria of income-producing CRE and land acquisition, development and construction (ADC).
  • Income-Producing CRE – CRE where the prospects for servicing the loan materially depend on the cash flows generated by the property securing the loan, rather than on the capacity of the borrower to service the debt from other sources, and the land ADC criteria are not applicable.
Land acquisition, development and construction (ADC)Sections 4.1.13 and 5.2.1(i)
Reverse MortgagesSection 4.1.14
Mortgage-Backed Securities (MBS)Section 4.1.15
Other credit risk-weighted assetsSection 4.1.23
Equity Investments in FundsSection 4.1.22 and 5.2.2(iii)
Banking Book Exposure Classes - Table footnotes
Banking Book Exposure Classes - Table footnote *

Corporate exposure includes:

Large Corporate (annual revenues > $750MM) – which include exposures to U.S. Government Sponsored Enterprises (GSEs);Mid-sized ($75MM <= annual revenues <=$750MM);SMEs treated as Corporate (annual revenues < $75MM); andSecurities Firms and Other Financial Institutions Treated as Corporate (annual revenues > $75MM).

Return to Banking Book Exposure Classes - Table footnote * referrer

Banking Book Exposure Classes - Table footnote **

Real estate exposures held by wholesale borrowers, even if secured by principal residences, are not eligible for the treatment of residential real estate and should be treated as Commercial Real Estate. Such exposures should be reported in schedule 40.230 or 40.240 (or schedule 50.260 or 50.270 for IRB) depending on whether or not repayment is materially dependent on cash flows generated by property, respectively.

Return to Banking Book Exposure Classes - Table footnote ** referrer

BUG-0018-19 definition lists in td's

Amendment control log
Amendment numberEffective reporting datePage numberDescription
1Q4 20001Add:Section 600 of the Bank Act (applies to Foreign Bank Branches)Change:Section 523 of the Bank Act is now Section 628
2Q4 20052, 3Delete:Country Risk Allowances
3Q4 20072, 4Change:
  • On-Balance Sheet to Recognized
  • Off-Balance Sheet to Unrecognized
4Q4 20082Change:The return template copy has been deleted from these instructions and has been posted as a separate item on OSFI's website
2, 3Change:Balance Sheet Asset references
5Q4 2010Instructions:
3Add:
  • (a)(i) Amortizing/traditional under 4. Mortgage Loans
  • (a)(ii) Reverse mortgages under 4. Mortgage Loans
Return Template:
3Add:
  • 4(a)(i) and (ii)
6Q4 2012Instructions:
2Change:Group allowances changes to collective allowances
Return Template:
1Change:Group allowances changes to collective allowances
7Q1 2018Instructions:
2Change:Instructions under General Instructions