OSFI Pushes Back Basel III Capital Floor by One Year

Canada's banking regulator announced in October 2024 that it is deferring a scheduled increase to the Basel III capital floor by one year. The move aligns with delays announced by the U.S. and European Union. The capital floor sets a lower bound on risk-weighted assets calculated under banks' internal models. Banks with internal models producing materially lower figures than the standardised approach gain relief, while those already well above the threshold face minimal impact.