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ARTICLE · 13 NOVEMBER 2018

OSFI Issues Final Versions Of The Capital Adequacy Requirements And The Leverage Requirements Guidelines

The LR guideline supplements this by setting out the framework for the leverage ratio, which helps measure the adequacy of an institution's capital.

CanadaFinance and Banking

The Office of the Superintendent of Financial Institutions (OSFI) has issued its final version of the Capital Adequacy Requirements (CAR) guideline and Leverage Requirements (LR) guideline. OSFI updates its CAR guideline periodically to ensure capital requirements reflect the underlying risks and developments in the financial industry. The LR guideline supplements this by setting out the framework for the leverage ratio, which helps measure the adequacy of an institution's capital.

CAR guideline:

OSFI's CAR guideline provides a framework for assessing the capital adequacy of banks, bank holding companies, federally regulated trust and loan companies and cooperative retail associations. OSFI initially issued the revised CAR guideline for public consultation in July 2018. The main revisions to the guideline include:

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