Share on LinkedInShare on LinkedIn

ARTICLE · 08 APRIL 2020

OSFI Proposes Measures To Support Resilience Amid Pandemic

OSFI has announced measures intended to support FRFIs and improve the stability of the Canadian economy and financial system in response to challenges posed by the COVID-19 pandemic and current market conditions:

CanadaFinance and Banking

The Office of the Superintendent of Financial Institutions (OSFI) has announced measures intended to support federally regulated financial institutions (FRFIs) and improve the stability of the Canadian economy and financial system in response to challenges posed by the COVID-19 pandemic and current market conditions:

  • Domestic Stability Buffer set to 1.00% of risk weighted assets. Originally, the Domestic Stability Buffer (DSB) was set at 2.25% of risk weighted assets to take effect on April 30, 2020. In response to current market conditions and the COVID-19 pandemic, effective immediately, OSFI has lowered the DSB by 1.25% of risk weighted assets in an attempt to support the ability of domestic systemically important banks (D-SIBs) to supply credit to the economy. The measure is expected to provide in excess of $300B of additional lending capacity by the D-SIBs, to be used to support Canadian businesses and households. In addition, OSFI expects that all FRFIs halt

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

About Norton Rose Fulbright Canada LLP

Norton Rose Fulbright is a global law firm. We provide the world's preeminent corporations and financial institutions with a full business law service. We have 3800 lawyers and other legal staff based in more than 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.

Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.

Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.

For more information about Norton Rose Fulbright, see nortonrosefulbright.com/legal-notices.

Law around the world
nortonrosefulbright.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See more popular content from