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The Office of the Superintendent of Financial Institutions (OSFI) is pushing back final implementation of the Basel III reforms by one quarter.

In a letter to the industry, the federal banking regulator said it will delay the adoption of the final Basel III reforms to the second quarter of 2023.

At the same time, it’s also pushing back new disclosure requirements, and changes to the capital and liquidity rules for smaller banks, to Q2 2023.

As a result, OSFI said it’s also delaying revisions to the liquidity adequacy guideline to April 1, 2023.

“These changes to implementation dates will provide institutions with the necessary time to address the breadth and depth of systems changes required to operationalize guidance revisions,” the regulator said in its letter.

Additionally, OSFI also announced its final policy approach to several issues that were examined in industry consultations earlier this year, including capital, leverage and liquidity guidance.

“Clarity on final policy positions… will help institutions continue their preparations ahead of implementation of the guideline revisions,” it said.