Canadian Bail-In Regulations: What You Need To Know

On June 16, 2017, Canada's Department of Finance and the Office of the Superintendent of Financial Institutions (OSFI) published for comments a package of draft regulations and guidelines setting out the final details of Canada's bail-in framework and related total loss absorbency capacity (TLAC) capital standard for Canada's six domestic systemically important banks (DSIBs). The bail-in regulations are expected to be finalized in the fall of 2017 and will take effect 180 days later. The Canadian DSIBs will be expected to fully meet the TLAC standard by November 2021. Both the bail-in power and the TLAC capital standard will have a considerable impact on Canadian DSIBs' funding and capital structures.