OSFI Delays Capital Floor Requirement for Canadian Banks

Canada's banking regulator announced in October 2024 that it is postponing a scheduled increase to the Basel III capital floor—a minimum threshold that prevents banks' internal risk models from underestimating their required reserves. The deferral aligns with similar delays by the U.S. and European Union. Banks whose internal calculations fall well below standardised measures gain the most breathing room; those already exceeding the floor see little change.