The Office of the Superintendent of Financial Institutions (OSFI) has provided greater transparency to the market surrounding the Domestic Stability Buffer (the DSB) currently held by Domestic Systemically Important Banks (D-SIBs) in a bid to guard against Pillar 2 risks associated with systemic vulnerabilities. OSFI revealed last week that D-SIBs
Covered bonds in Canada – an increased regulatory stance
The Office of the Superintendent of Financial Institutions (OSFI), the federal financial institutions prudential regulator, recently addressed the issue of a cap on issuance of covered bonds which presently stands at 4% of a bank’s total assets.
OSFI is now taking a hard look at this limit and is doing so in the
Encouraging results on consumers’ perception of banks
In April 2016, the Australian Bankers’ Association (ABA) initiated the Banking Reform Program – Better Banking (Program).[1] The Program was developed to protect consumer interests, increase transparency and accountability, and to build consumer trust and confidence in banks through a range of initiatives.
Edelman Intelligence has conducted two rounds of
Royal Commission into Misconduct in Financial Services
The much anticipated Royal Commission was no surprise to the Australian banking industry. What was surprising was the extension of its terms of reference to local and foreign deposit-taking institutions, life and general insurers, superannuation funds, as well as asset managers, financial planning businesses and all other holders of Australian financial services licences. Let there
Bank Act Financial Consumer Protection Framework passes third reading in House of Commons
Bill C-29, Budget Implementation Act, 2016, No. 2, (Bill C-29) passed third reading in the House of Commons on December 6, 2016.
Once passed by the Senate and brought into force, Bill C-29 will amend the Bank Act (Canada) (the Bank Act) to enact the long awaited Financial Consumer Protection Framework
Product suitability obligation and intervention powers to be fast-tracked: Government responds to calls for Royal Commission into the banks
In response to Opposition calls for a Royal Commission into the banking sector, the Australian Government has announced a $127 million reform package aimed at increasing the powers of Australia’s corporate watchdog, ASIC. A key component of that package will be the accelerated implementation of two key recommendations of the Financial System Inquiry: an obligation
Global corporate governance standards for banks – Australian perspectives
On 8 July the Basel Committee (BIS) issued a paper setting out 13 corporate governance principles for banks. These principles supersede the 2010 BIS principles and are to be applied and adapted by national bank regulators as they see fit. This work has been some time in the making with a peer review
Crucial next steps for the Murray Inquiry
The next few months provide a crucial opportunity for participants in the Australian financial services industry to influence the final report of the Australian Financial System Inquiry, headed by David Murray.
The Interim Report has generated a lot of debate around the role of vertically integrated groups, the favourable funding and regulatory position of
Conglomerates on APRA’s radar
Major financial institutions should prepare for group wide regulation as Australia’s peak prudential regulator gears up for stricter supervision of conglomerates.
The Australian Prudential Regulation Authority’s (APRA) planned framework for supervising conglomerates arises from its concern around the potential contagion risks faced by APRA-regulated entities within conglomerate groups. APRA is concerned that the