The Office of the Superintendent of Financial Institutions (OSFI) on Monday issued its final guideline on total loss absorbing capacity (TLAC) disclosure requirements for Canadian domestic systemically-important banks (D-SIBs).
Among other things, the guideline sets out the format, timing and location of the TLAC disclosure requirements.
The guideline requires D-SIBs to begin publicly disclosing the required TLAC information on a quarterly basis, beginning with the quarter ended Jan. 31, 2019.
Although TLAC disclosure requirements start for Q1 2019, the banks will have until Nov. 1, 2021 to fully meet the minimum TLAC requirements.
“OSFI’s objective is to promote transparency, market discipline and comparability among institutions,” it states in the guideline. “The TLAC disclosure requirements applicable to D-SIBs promote robust disclosures that are comparable across D-SIBs and with their international peers.”
The guidelines aligns D-SIB disclosure requirements with the requirements for global SIBs, which are being adopted by the Basel Committee on Banking Supervision. “D-SIBs will continue to have disclosure practices that are among the best of their international peers,” OSFI states.
Additionally, the new guideline updates the capital disclosure requirements for all federally regulated deposit-taking institutions, which removes transitional provisions that no longer apply.