The Office of the Superintendent of Financial Institutions published its Quarterly Release, opening a 90-day public consultation on draft 2027 Capital Adequacy Requirements changes for credit risk and releasing a final 2026 Minimum Capital Test Guideline for property and casualty insurers. The package also advances OSFI’s programme to streamline its guidance library and publishes updates on supervisory framework implementation and climate-risk regulatory returns. The draft Capital Adequacy Requirements proposals aim to align credit risk capital requirements more closely with risks faced by financial institutions while freeing capacity for banks to extend credit. The final Minimum Capital Test Guideline, effective January 1, 2026, simplifies the unexpired coverage formula, clarifies capital treatment for foreign branches, updates capital confirmation requirements, and makes minor adjustments to how the framework is applied. OSFI will rescind or remove 32 additional documents from its guidance library by December 31, 2025, bringing the total eliminated to 52 documents representing more than 600 pages since the initiative began 18 months ago. The Supervisory Framework Renewal post-implementation report reviews how the framework implemented in April 2024 is working in practice, reflecting stakeholder feedback and identifying areas for improvement, while a lessons-learned report on 2025 Climate Risk Returns draws on first standardized filings by Canada’s six systemically important banks and four internationally active insurance groups and outlines future amendments. The consultation on the draft Capital Adequacy Requirements runs for 90 days, the Minimum Capital Test Guideline takes effect on January 1, 2026, and the additional guidance removals are scheduled for completion by December 31, 2025. Future amendments to the climate-risk returns will follow from the issues identified through the 2025 submissions.

Original source View in tracker