2026-01-29

Liquidity Adequacy Requirements (LAR) Chapter 4 - Net Cumulative Cash Flow

OSFI's Liquidity Adequacy Requirements (LAR) Guideline, Chapter 4, details the Net Cumulative Cash Flow (NCCF) metric, which measures an institution's detailed cash flows to capture funding mismatch risk under a severe but plausible liquidity stress scenario. This metric applies to Domestic Systemically Important Banks (DSIBs) and Category I and II institutions, requiring them to consider structural, contingent, and market liquidity risk through comprehensive or streamlined NCCF analyses. The NCCF calculates an institution's survival horizon based on net positive cash flows over a 12-month period, with OSFI reserving the right to require institution-specific NCCF survival horizons.

Canada

Office of the Superintendent of Financial Institutions

Show thumbnailShow full textSourceAdd to collection

Show thumbnail