Regulatory Alerts2025-09-11
Capital Adequacy Requirements (CAR) Chapter 9 – Market Risk
OSFI establishes market risk capital requirements for banks, bank holding companies, and trust and loan companies to ensure adequate regulatory buffers against price fluctuations. The framework defines standardized and internal models approaches for calculating capital charges, specifying risk factor eligibility, valuation adjustments, backtesting protocols, and profit-and-loss attribution tests. Effective November 2025 or January 2026, institutions must continuously monitor trading and banking book positions to maintain compliance with these capital adequacy standards.
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