The Office of the Superintendent of Financial Institutions (OSFI) is following the lead of global regulators in giving Canadian banks an extra year to comply with new liquidity requirements under the new capital adequacy rules known as Basel III.
OSFI announced on Monday that the Canadian banks will have until Jan. 1, 2019 to comply with new liquidity requirements under the Net Stable Funding Ratio component of the Basel III reforms.
The original implementation deadline was Jan. 1, 2018, however, OSFI states that "it is uncertain that key foreign markets will implement the standard by the January 2018 deadline". As a result, the regulator is extending the implementation deadline for the NSFR to align with other major banking markets.
OSFI plans to meet with industry stakeholders in the months ahead "to review its guideline implementation plans" and to clarify the details of the NSFR rules for the Canadian market.