OTTAWA, Dec. 4, 2019 /CNW/ - Today the Office of the Superintendent of Financial Institutions (OSFI) released the final version of Guideline A-10: Foreign Bank Branch Deposit Requirement. This guideline addresses OSFI's expectations with respect to the minimum deposit, to be held in trust, which authorized foreign banks must maintain in respect of their business in Canada.
The previous version of Guideline A-10 dates back to 2002. Since then, practices have evolved and so have OSFI's expectations. The most notable change is to the deposit ratio calculation, which will now exclude off-balance sheet liabilities and include accrued expenses.
The updates ensure a more streamlined Guideline A-10 that better aligns with the Bank Act. The final version of the guideline takes effect on January 1, 2020.
"The financial services industry in Canada and around the globe is continually evolving. The changes to Guideline A-10 align the requirements for foreign bank branches with current expectations and practices."
— Ben Gully, Assistant Superintendent, Regulation.
Guideline A-10 establishes rules around the required deposit, including:
- the need for a deposit agreement
- what assets qualify for inclusion in the deposit
- how to deposit or withdraw assets; and
- how to calculate and report the required deposit
- Guideline A-10: Foreign Bank Branch Deposit Requirement
- Cover Letter
- Guideline Impact Analysis Statement
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
SOURCE Office of the Superintendent of Financial Institutions
For further information: Media Contact, OSFI - Public Affairs, [email protected], 343-550-9373