Reference: Advisory for Banks/T&L;/Life | ||
April 15, 2003 | ||
File: P2212-1 | ||
TO: | Banks Federally Regulated Trust and Loan Companies Federally Regulated Life Insurance Companies |
Subject: | Tier 1 Capital Clarifications |
OSFI’s Guideline A, Capital Adequacy Requirements (Banks/T&L;), Guideline A, Minimum Continuing Capital and Surplus Requirements (Life), and Interim Appendix to Guideline A-2 (Banks/T&L;/Life) set out the primary considerations for defining the capital of an institution for the purposes of measuring capital adequacy. In particular, they establish the conditions for recognizing a capital instrument in Tier 1 capital. OSFI has reviewed a number of Tier 1 capital issues in relation to recent international developments and proposals from federally regulated financial institutions (FRFIs). As a result of this review, OSFI is issuing an Advisory to clarify our practice or amend our capital rules in three specific areas:
OSFI plans to incorporate this Advisory in the next revisions of the captioned capital adequacy guidelines. The Advisory is available in English and French on OSFI’s Internet web site (http://www.osfi-bsif.gc.ca) under the Publications section. It can also be obtained by contacting Mr. Stéphane Dupel, General Services Division, by e-mail at extcomm@osfi-bsif.gc.ca or by facsimile at (613) 952-8219. Questions regarding the Advisory should be addressed to Mr. Paul Melaschenko, Capital Division, at (613) 990-6429 or by facsimile at (613) 991-6822. |
Yours sincerely, | |
Michael Hafeman Assistant Superintendent Specialist Support Sector |
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