Canada's Office of the Superintendent of Financial Institutions has decided against a phase-in period for the implementation of the new international financial reporting standard, or IFRS 9, saying reported projections showed no widespread material impact on banks' capital positions.
The new reporting standard will be used for annual periods beginning Jan. 1, 2018.
On the other hand, the regulator is extending the implementation timeline in Canada for the standardized approach to counterparty credit risk and related capital requirements. Implementation is now expected to occur in the first quarter of 2019, although banks are required to report amounts under the approach beginning first-quarter 2018.
The regulator also released the final version of its capital adequacy requirements guideline, having primarily adjusted the capital treatment of allowances in light of IFRS 9 adoption. Final changes affecting holdings of instruments issued by systemically important banks to meet Total Loss Absorbing Capacity requirements have yet to be issued.