OSFI Releases ICAAP Feedback

The Office of the Superintendent of Financial Institutions (OSFI) has released its annual feedback on Internal Capital Adequacy Assessment Process (ICAAP ) submissions filed in 2014. The feedback relates to banks and other deposit-taking institutions that use the standardized approach to credit risk with respect to their Capital Adequacy Requirements Pillar I capital levels. The feedback therefore applies to most of the banks in Canada other than the large domestic systemically important banks.

Although the next ICAAP report is not due until the end of 2016, OSFI provides the feedback so that banks may begin to incorporate OSFI's observations and concerns into their capital assessment processes.