December 7, 2017
The Office of the Superintendent of Financial Institutions (OSFI) welcomes today’s announcement that the final pieces of the Basel III reforms have been endorsed by the Group of Central Bank Governors and Heads of Supervision, the committee that oversees the Basel Committee on Banking Supervision. The announcement followed a meeting earlier today in Frankfurt, Germany, and caps an important period in the regulatory response to the financial crisis.
The Basel III reforms have been introduced through a series of regulatory changes in recent years, designed to address weaknesses in banks’ resiliency that were revealed during the financial crisis. Previous changes were designed to deal with the quantity and quality of bank capital and liquidity. This final set of reforms is aimed at improving the risk sensitivity of capital standards and will increase the transparency and consistency in the way banks measure and report their exposure to various risks, and the capital held against those risks.
OSFI will launch a public consultation on the domestic implementation of the Basel III reforms in spring 2018. The consultation will focus on potential modifications required for the Canadian context and on the implementation timelines.
To read the full press release, click here.