Also corresponding revisions to SMSB Capital and Liquidity Requirements Guideline.
Published each chapter guidelines, including: Risk-based capital requirements (Ch. 1).
Definition of capital (Ch. 2); Operational Risk Capital Adequacy Requirements (Ch. 3).
Credit Risk - Standardized Approach Capital Adequacy Requirements (Ch. 4) and Credit Risk - Internal Ratings-Based Approach Capital Adequacy Requirements (Ch. 5).
Also published Securitization Capital Adequacy Requirements (Ch. 6); and final version of Settlement And Counterparty Risk Capital Adequacy Requirements (Ch. 7).
Credit Valuation Adjustment (CVA) Risk Capital Adequacy Requirements (Ch. 8).
Published final revisions to Market Risk Capital Adequacy Requirements (Ch. 9),
The CAR Guideline (2026) will take effect on Nov. 1, 2025, or Jan. 1, 2026 for institutions with a fiscal year ending Oct. 31 or Dec. 31, respectively.
On Feb. 20, C-OSFI proposed capital adequacy requirement guidelines.
C-OSFI issued consult on draft capital adequacy requirement (CAR) guideline 2026.
Also proposed corresponding revisions to Small and Medium-Sized Deposit-Taking Institutions (SMSB) Capital and Liquidity Requirements Guideline with consultation.
Follows C-OSFI statement will defer increases to Basel III capital floor level, #218707.
Assistant Superintendent Radiskovic delivered remarks on consult of draft guidelines.
Draft CAR Guidelines
Clarify expectations regarding treatment of combined loan products (CLPs) under credit risk standardized approach (SA) and internal ratings-based (IRB) approaches.
Help ensure capital treatment is consistent with the risks and structure of CLPs.
Proposed to update definition of income-producing residential real estate exposures, where repayment is materially dependent on cash flows generated by property.
Clarify treatment of certain US government sponsored entities; align with US rules.
Update interim capital floor requirements for newly approved to use the IRB approach.
Modified the default risk charge for sovereign exposures under market risk standardized approach to more closely align with treatment in the Basel framework.
Clarify credit valuation adjustment (CVA) framework applies to all institutions with transactions in scope for CVA capital charge, including small and medium-sized banks.
Making corresponding change concerning CVA framework to the SMSB Guideline.
Clarify institutions charged user fees for both preliminary, final capital confirmations.
Incorporate existing FAQS on website related to operational risk and market risk.
Consultation
Comments and feedback on CAR guideline and SMSB guideline due by Apr. 22, 2025.
Also corresponding revisions to SMSB Capital and Liquidity Requirements Guideline.
Published each chapter guidelines, including: Risk-based capital requirements (Ch. 1).
Definition of capital (Ch. 2); Operational Risk Capital Adequacy Requirements (Ch. 3).
Credit Risk - Standardized Approach Capital Adequacy Requirements (Ch. 4) and Credit Risk - Internal Ratings-Based Approach Capital Adequacy Requirements (Ch. 5).
Also published Securitization Capital Adequacy Requirements (Ch. 6); and final version of Settlement And Counterparty Risk Capital Adequacy Requirements (Ch. 7).
Credit Valuation Adjustment (CVA) Risk Capital Adequacy Requirements (Ch. 8).
Published final revisions to Market Risk Capital Adequacy Requirements (Ch. 9),
The CAR Guideline (2026) will take effect on Nov. 1, 2025, or Jan. 1, 2026 for institutions with a fiscal year ending Oct. 31 or Dec. 31, respectively.
Regulators
C-OSFI
Entity Types
Bank; BHC; SIFI
Reference
PR, Lt, Gd, 9/11/2025; PR, RF, Sp, 2/20/2025; Basel III
