The Office of the Superintendent of Financial institutions (OSFI) is releasing for public consultation revisions to the capital adequacy requirements (CAR) guideline for banks, OSFI announced on Friday

The revised guideline would take effect in the first quarter of 2019.

The primary revisions would implement the standardized approach to counterparty credit risk, address capital requirements for bank exposures to central counterparties and accommodate revisions to the securitization framework.

Alongside these proposed changes, the updated guideline would:

  • incorporate changes to the capital floor that OSFI adopted earlier this year
  • recognize the Kroll Bond Rating Agency Inc. as an external credit assessment institution, and
  • provide clarifications to certain aspects of the rules based on questions from the industry.

Comments on the proposed changes are due by Aug. 31.