Allowances for Expected Credit Losses (E3)

Return of allowances for expected credit losses

Purpose

This return provides the Office of the Superintendent of Financial Institutions with detailed information relating to allowances for expected credit losses. Highlighted text*This return applies to allowances in all 3 stages recorded under IFRS 9.*

Statutory

Sections 628 and 600 of the Bank Act and Section 495 of the Trust and Loan Companies Act.

Application

This return applies to all deposit-taking institutions.

Publication

Certain information from this return is made available on a total and institution-by-institution basis on the OSFI website at www.osfi-bsif.gc.ca.

Frequency

• Institutions with fiscal year-ends of October - Quarterly - January, April, July and October
• Institutions with fiscal year-ends of December - Quarterly - March, June, September and December

Contact person

Provide the name and phone number of the person to contact regarding any questions about this return.

Reporting dates

The return is to be completed as of the last day of each quarter and submitted within 45 days of the reporting date as follows:

• Institutions with fiscal year-ends of October - January, April, July and October
• Institutions with fiscal year-ends of December - March, June, September and December

Contact agency

OSFI.

General instructions

Accounting practices with respect to allowances for expected credit losses are described in detail in IFRS 9, Financial Instruments, of the CPA Canada Handbook and Section 2 of OSFI's IFRS 9 Financial Instruments and Disclosures Guideline .

Allowances for Expected Credit Losses

Report the Recorded Investment and allowance for expected credit losses for each of the category of assets set out below. The Highlighted text*recorded investment and the* allowance for expected credit losses is required by category Highlighted text*of financial instrument and* by each of stages 1, 2 and 3. Highlighted text*Recorded investment is the gross outstanding amount in each of the 3 stages.* Note that the net impaired amount is equal to stage 3 recorded investment less stage 3 allowance for expected credit losses.

1. Deposits with Regulated Financial Institutions

2. Securities

   1. Securities measured at amortized cost

   2. Securities measured at fair value through other comprehensive income

3. Loans

   The sum of "a" and "b" below should equal the total loans outstanding.

   1. Non-Mortgage Loans

      1. To Individuals for Non-Business Purposes

         The sum of "a" to "d" below should equal the total of all outstanding non-mortgage loans to individuals for non-business purposes, disaggregated as follows:

         1. Credit cards
         2. Personal loan plans
            1. Of which private passenger vehicles
         3. Personal line of credit
            1. Of which HELOC insured
            2. Of which HELOC uninsured
         4. Other personal loans

      2. Other
         Report all Non-Mortgage Loans other than to Individuals for Non-Business Purposes

   2. Mortgage Loans

      1. Residential - Report all residential mortgages including reverse mortgages.

         1. Of which Uninsured - Separately report uninsured residential mortgage loans in this line item.

      2. Non-Residential

4. Acceptances

5. Other Recognized Assets

   1. Report all other assets not already listed above.

6. Total

   1. Report the total Recorded Investment and allowance for Expected Credit Losses by stage, as well as the total net impaired.

Memo Items

Report the recorded investment for each of the category of assets set out below. For the total outstanding reverse mortgage exposure, report the allowance for expected credit losses by each of stages 1, 2 and 3, as well as the net impaired amount.

1. Mortgage loans – Residential - Of which: Reverse mortgages

   Separately report reverse mortgages in this line item.

   Include:
   Separately report reverse mortgages in this line item. The sum of "a" & "b" & "c" & "d" below should include the total outstanding reverse mortgage exposure.

1. Reverse Mortgages: Principal

   Include:

   • The mortgage principal outstanding.
2. Reverse Mortgages: Accrued Interest

   Include:

   • The total accrued interest to date on the reverse mortgage loan.
3. Reverse Mortgages: Accrued Fees

   Include:

   • The total accrued fees to date on the reverse mortgage loan
4. Reverse Mortgages: Other Accrued Items

   Include:

   • Other Items that are included in the outstanding amount. The purpose of this field is act as a "catch-all" for other items not already mentioned in items a - c.

2. Reverse mortgages - Residential
   1. Reverse Mortgages: Unpaid Taxes

      Include:

      • The total unpaid taxes to date. This would include unpaid taxes that are not necessarily included in the total reverse mortgages outstanding.
   2. Reverse Mortgages: Unpaid Insurance

      Include:

      • The total unpaid insurance fees to date. This would include unpaid insurance that is not necessarily included in the total reverse mortgages outstanding.
3. Unrecognized Items on Which Allowances Have Been Established

   Report the Notional or Contract Amount and the Allowance for Expected Credit Losses for Unrecognized Items on Which Allowances Have Been Established.