The Office of the Superintendent of Financial Institutions (OSFI), Canada's federal banking regulator, has issued a draft Liquidity Adequacy Requirements Guideline, which reflects the intraday liquidity risk management requirements (PDF) issued by the Basel Committee on Banking Supervision (BCBS). The draft guideline would establish the OSFI's framework for the management of a bank's intraday liquidity risk, which is also meant to enable supervisors and payment and settlement systems overseers to monitor a bank's ability to meet payment and settlement obligations on a timely basis. By adopting these new elements of the BCBS's Basel III regime, the OSFI guidance establishes two minimum standards, the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR), as well as liquidity monitoring tools for regulators. Canadian banks would be required to implement the new liquidity standards by January 1, 2015. The OSFI stressed that banks would not be entitled to any phase-in
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