Regulatory Alerts2020-03-31
Notice relating to new measures for deposit and trust institutions to reduce the impact of issues stemming from COVID-19
The Autorité des marchés financiers issued this notice to implement temporary capital and liquidity relief measures for Quebec’s deposit, trust, and credit union institutions in response to the COVID-19 pandemic. The measures allow loan payment deferrals to be classified as performing, introduce transitional expected loss provisioning to boost Tier 1A capital, exempt specific Bank of Canada funding transactions from liquidity outflows, and defer Basel III implementation timelines to 2023 or 2024. Additionally, the regulator extends hardship definitions for term deposits, lowers stress VaR multipliers, increases covered bond limits, and suspends ongoing consultations until further notice to ensure operational continuity during the crisis.
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