rules and regulations
Bet_Noire/iStock

Federal financial regulators have introduced new guidance on banks’ cryptoasset exposures, proposed changes to their capital rules, and signalled plans to revise the climate disclosure requirements.

On Thursday, as part of a series of regulatory announcements, the Office of the Superintendent of Financial Institutions (OSFI) released final guidance that sets out its approach to the treatment of banks’ crypto holdings in terms of both regulatory capital and liquidity requirements — and, in separate guidance, it also detailed the regulator’s expectations for disclosing these exposures.

The new guidance on crypto disclosure will take effect in the first quarter of 2026, replacing existing requirements that were released in 2022.

At the same time, OSFI also issued its latest proposed changes to the capital adequacy rules for a 60-day consultation period (ending April 22).

In a media briefing, Angie Radiskovic, assistant superintendent and chief strategy and risk officer at OSFI, said that the proposed changes aim to clarify existing capital rules and improve the consistency of their application.

Specifically, it’s proposing changes to more closely align aspects of the rules with the Basel III framework, and updating the definition of income-producing residential real estate exposures. The consultation also reflects the regulator’s decision, announced Feb. 12, to halt the implementation of one of its final reforms under the Basel III reforms that were adopted in the wake of the financial crisis.

Last week, OSFI said that it has paused planned increases in the “output floor” — a measure that would tighten capital requirements on the large Canadian banks — indefinitely, citing uncertainty about whether regulators in other jurisdictions will be adopting the final Basel III reforms in their markets, and concerns about the competitive impact on the banking industry in Canada.

Finally, the regulator also said that it is revising its guidance on climate risk to align with the Canadian Sustainability Standards Board’s (CSSB) final standards, which were released back in December 2024.

OSFI said that the revised guidance, which will be released in late March, will align its requirements with the CSSB on the disclosure for so-called “Scope 3” greenhouse gas emissions — implementing these requirements in fiscal 2028, and disclosing off-balance sheet Scope 3 emissions in fiscal 2029.

“Although the alignment with the CSSB provides additional transition relief for the disclosure of Scope 3 greenhouse gas emissions, we expect federally regulated financial institutions to continue to make progress in understanding, measuring, and managing their climate-related risks,” OSFI noted.

OSFI also said that, later this year, it will consult on disclosure expectations for greenhouse gas emissions from off-balance sheet assets.