OSFI Guidance Library

Liquidity Adequacy Requirements (LAR) 2026: Liquidity Coverage Ratio

The Office of the Superintendent of Financial Institutions Canada (OSFI) has issued Chapter 2 of its 2026 Liquidity Adequacy Requirements (LAR) Guideline, focusing on the Liquidity Coverage Ratio (LCR). This guidance, effective May 1, 2026, aligns with the Basel III framework and aims to ensure financial institutions hold sufficient high-quality liquid assets to withstand a 30-day stress scenario.

Liquidity Adequacy Requirements (LAR) 2026: Net Stable Funding Ratio Guideline

OSFI has issued the Liquidity Adequacy Requirements (LAR) 2026 Guideline, Chapter 3, focusing on the Net Stable Funding Ratio (NSFR). This guideline, effective May 1, 2026, establishes a minimum NSFR of 100% for covered institutions to promote a more resilient banking sector.

Liquidity Adequacy Requirements (LAR) 2026: Net Cumulative Cash Flow Metric

The Office of the Superintendent of Financial Institutions (OSFI) has issued Chapter 4 of the Liquidity Adequacy Requirements (LAR) 2026, detailing the Net Cumulative Cash Flow (NCCF) metric. This new metric, effective May 1, 2026, will be used to supervise and monitor liquidity at individual financial institutions, particularly Domestic Systemically Important Banks (DSIBs) and Category I and II institutions.

Capital Requirements Reduced for Domestic Infrastructure Debt

OSFI has reduced capital requirements for federally regulated property and casualty insurers investing in domestic infrastructure debt. These changes, effective immediately, lower credit risk factors for unrated infrastructure debt, with specific reductions detailed for various maturity terms. The revisions aim to encourage investment in domestic infrastructure while maintaining prudential standards.

2026 Earthquake Exposure Data Memorandum

The Office of the Superintendent of Financial Institutions Canada reminds federally regulated property and casualty insurers to file their 2026 Earthquake Data Form by May 31, 2026. No changes were made to the form or instructions for 2026, but insurers are voluntarily requested to submit supplemental 1-in-200 year probable maximum loss data.