2026-01-29

Liquidity Adequacy Requirements (LAR) 2026, Chapter 5 – Operating Cash Flow Statement

OSFI's Chapter 5 of the Liquidity Adequacy Requirements (LAR) Guideline introduces the Operating Cash Flow Statement (OCFS) as a supervisory tool for Category III institutions to measure and monitor liquidity over a one-year horizon. The OCFS, a cash flow forecasting measure, factors in unencumbered liquid assets, contractual cash inflows, and outflows, though it is not a regulatory standard with a defined minimum threshold. OSFI may, however, set institution-specific OCFS levels requiring positive cumulative liquid assets and net cash flows, with specific deposit run-off rates applied to demand and term deposits across weekly and monthly time bands.

Canada

Office of the Superintendent of Financial Institutions

Show thumbnailShow full textSourceAdd to collection

Show thumbnail