Liquidity Adequacy Requirements Guideline (2025) - Letter

Today, we are publishing the Liquidity Adequacy Requirements (LAR) 2025 guideline, with corresponding revisions to the Small and Medium-Sized Deposit-Taking Institutions (SMSB) Capital and Liquidity Requirements Guideline, which will take effect on April 1, 2025.

The revised LAR guideline reflects two key revisions on intraday liquidity and the treatment of Bankers' Acceptances (BAs). Intraday liquidity revisions affect chapters 1 and 7 of the LAR guideline. Revisions to the treatment of BAs affect chapters 3 and 4. We did not make any changes to chapters 2, 5, or 6.

This summer, we conducted a consultation on revisions to the guidelines and related regulatory reporting requirements. We appreciate the stakeholder engagement that occurred during this consultation. We have updated the LAR guideline in consideration of the feedback we received.

To allow for more industry engagement on the intraday liquidity regulatory return, we are postponing the release of the return until the spring of 2025, with a target implementation date of November 1, 2025. We are also reducing the number of institutions required to file the return by targeting only the direct clearers of Lynx, Canada’s large-value payment system.

Please refer to summary of stakeholder comments and our responses.

Should you have any questions, please contact Adam Dolson (adam.dolson@osfi-bsif.gc.ca), Director, Banking Capital and Liquidity Standards Division, Risk Advisory Hub.

Sincerely,

Amar Munipalle
Executive Director, Risk Advisory Hub