The Office of the Superintendent of Financial Institutions has modified the capital requirements for authorized foreign banks.

The minimum initial deposit for full-service branches has been reduced to $5 million from $10 million. The capital equivalency deposit for full-service branches is now reduced to the greater of $5 million or 5% of Canadian liabilities.

Before being allowed to operate in Canada, the Superintendent must be satisfied that foreign banks have met certain conditions. OSFI will conduct an on-site commencement review to ensure that the branch is complying with the Bank Act and established policies. Apart from the capital change, all the other requirements remain the same.