The Office of the Superintendent of Financial Institutions (OSFI) Tuesday published a proposed guideline setting out revised capital rules for banks, that will implement the Basel III capital regime.
OSFI issued for comment a draft revised version of the capital adequacy guidelines, which are to take effect in the first quarter of fiscal 2013. The guideline is being revised to reflect the reforms initiated by the Basel Committee on Banking Supervision in order to strengthen global capital rules to promote a more resilient banking sector.
The revisions include changes to minimum and target capital levels; higher standards for capital instruments and changes to regulatory adjustments; new risk weights; new charges for certain items; details on elements of the rules, such as the treatment of derivatives; among other substantive changes, and a reorganization of the guidelines.
Comments are due by September 28, and the guideline is to be finalized by the end of the year.