OSFI Releases Final Capital Adequacy Requirements Guideline

On December 10, 2012, the Office of the Superintendent of Financial Institutions Canada (OSFI) issued the final version of the revised Capital Adequacy Requirements Guideline (the Guideline).  The Guideline has been revised as a result of the Basel Committee on Banking Supervision (the BCBS) reforms to strengthen global capital rules with the goal of promoting a more resilient banking sector, commonly referred to as Basel III.  The Guideline will come into effect January 2013 for all banks, bank holding companies, federally regulated trust and loan companies and cooperative retail associations, with the exception of the provisions relating to Credit Valuation Adjustment capital charges which will come into effect on January 1, 2014 to align with the implementation timetable in the United States and the European Union.