The Office of the Superintendent of Financial Institutions Canada (OSFI) has issued an Advisory, “Global systemically important banks – Public disclosure requirements”, which clarifies the implementation in Canada of the annual public disclosure requirements outlined in the Basel Committee on Banking Supervision document entitled “Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement”.
The public disclosure requirements outlined in the Advisory are an annual data disclosure exercise that applies to federally-regulated banks with a Basel III leverage ratio exposure measure exceeding €200 billion (CAD $304.4 billion) at financial year-end. Public disclosure of year-end data for 2014 and 2013 is required no later than the date of a bank’s Q1 2015 public disclosure of shareholder financial data. Public disclosure of data for year-ends subsequent to 2014 is required annually no later than the date of a bank’s annual public disclosure of shareholder financial data.
The annual public disclosure requirements can form part of a bank’s annual report to shareholders (e.g., in the Management Discussion and Analysis section) or in the case of the year-end data for 2014 and 2013, the disclosure requirement can be published as part of the interim report to shareholders. At a minimum, the published report to shareholders should provide a direct link to the completed disclosures on the bank’s website. The information that banks are required to publicly disclose can be found in Section 4 of the Advisory, which can be found at the following link.