Managing regulatory costs and resources in the SMSB community

Driving and maintaining your BCARs within OSFI's Regulatory Lanes

In Canada, banks of all asset sizes are faced with a seismic shift in meeting regulatory reporting, given the latest Basel III reform requirements slated for Q2 2023 reporting. Credit risk, liquidity, and capital management reporting will see the most significant impact.

BCAR reporting has seen a complete revamp, with an increased number of schedules (from 45 to 86) and expanded reporting, including the introduction of new asset classes such as covered bonds and identifying how a risk weight is derived from rated or unrated standardized lookups.

Acknowledgment by the Office of the Superintendent of Financial Institutions (OSFI) of the additional reporting requirements due to Basel III reforms has provided further guidance for risk weight and liquidity calculations for Small and Medium-Sized Deposit-Taking Institutions (SMSBs). There are over 65 financial institutions in Canada that have a limited window of time to engineer their BCAR reporting and get their motors ready to meet OSFI’s filing requirements.

Are you looking to achieve a sustainable BCAR implementation? What are the key factors one should consider?

If you are currently working on improving your regulatory reporting processes or would like to learn more about how Suade is automating regulation for global financial institutions, then please get in touch to arrange a demo.