OSFI Finalizes Liquidity Adequacy Requirements Guideline

The Office of the Superintendent of Financial Institutions (OSFI) has issued the final Liquidity Adequacy Requirements (LAR) Guideline 2026, effective May 1, 2026. This updated guideline incorporates feedback from a public consultation and clarifies the classification of retail funding, the measurement of structured note maturities, and the application of contingent funding obligations. Key changes include refining the definition of retail deposits and aligning the liquidity treatment for certain structured notes with term deposits.

Federally regulated banks, bank holding companies, and trust and loan companies must review and implement the updated LAR Guideline by May 1, 2026. The changes aim to ensure these institutions can meet their obligations during periods of stress, enhancing financial resilience and aligning with international standards. While the guideline clarifies existing requirements, institutions should ensure their internal processes and reporting accurately reflect the updated definitions and treatments to maintain compliance.