Implementation Of The Final Basel III Reforms In Canada – Request For Comments

The Office of the Superintendent of Financial Institutions (OSFI) has released a discussion paper on the proposed implementation of the final Basel III reforms in Canada.

The reforms were published in December 2017 and, in summary, seek to:

• Enhance credibility in the calculation of risk-weighted assets.
• Improve the comparability and transparency of banks' capital ratios. This includes revisions to (i) the standardized approach and internal ratings based approach to credit risk, (ii) the operational risk framework, (iii) the leverage ratio framework, and (iv) the credit valuation adjustment requirements. Improve the comparability and transparency of banks' capital ratios. This includes revisions to (i) the standardized approach and internal ratings based approach to credit risk, (ii) the operational risk framework, (iii) the leverage ratio framework, and (iv) the credit valuation adjustment requirements.