The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments on a consultation paper related to the capital and liquidity requirements applicable to small and medium-sized deposit-taking institutions, the federal banking regulator announced Friday.
In the paper, OSFI proposes changes to the capital and liquidity requirements for smaller institutions and summarizes stakeholder feedback on a July 2019 discussion paper: Advancing Proportionality: Tailoring Capital and Liquidity Requirements for Small and Medium-Sized Deposit-Taking Institutions.
Draft capital and liquidity requirements specific to small and medium-sized deposit-taking institutions will be published in late spring 2020, OSFI says in a news release.
The goal of the consultation is to improve institutions’ preparedness and resilience to financial risks, OSFI says, and to ensure that OSFI’s capital and liquidity regime remains appropriate for smaller, less complex companies.
“This initiative strives to further align capital and liquidity requirements with the unique characteristics of small and medium-sized deposit-taking institutions in Canada, ensuring the protection of depositors and other creditors while allowing these institutions to compete effectively and take reasonable risks,” says Ben Gully, assistant superintendent, regulation, in a statement.