Canada’s big banks to face new disclosure requirements

The Office of the Superintendent of Financial Institutions (OSFI) issued the final version of guidance setting out its expectations for the Canada’s big banks — specifically those designated as domestic systemically-important banks (D-SIBs) — to adopt new disclosure requirements under the revised global capital regime known as Basel III.

The revised guidance, which takes effect Oct. 31, 2018, will establish new disclosure obligations when it comes to the banks’ reporting around credit risk, counterparty credit risk and their securitization activities.

“Disclosure is a key tool for decision-making and market discipline,” says Carolyn Rogers, assistant superintendent with OSFI, in a statement. “By adopting disclosure practices that are in line with their international peers, Canadian D-SIBs are more inclined to maintain high levels of public confidence.”

The revised requirements represent the first phase of the Basel Committee on Banking Supervisions’s work at revising the disclosure framework, OSFI notes.

“Additional disclosure requirements for Canadian D-SIBs are likely to be introduced at a later date,” OSFI states.

Once the Basel Committee completes all of its work on revising banks’ disclosure requirements, OSFI will determine how the requirements should apply to other, small- and medium-sized banks.

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