2026-01-29

Liquidity Adequacy Requirements (LAR) Chapter 2 – Liquidity Coverage Ratio

OSFI establishes the Liquidity Coverage Ratio standard for Canadian banks, bank holding companies, and trust and loan companies to ensure short-term liquidity resilience. The guideline requires institutions to maintain unencumbered high-quality liquid assets sufficient to cover total net cash outflows over a 30-day stress scenario, targeting a minimum ratio of 100 percent under normal conditions. It outlines detailed calculation methodologies, asset qualification criteria, and OSFI’s flexible supervisory framework for assessing liquidity shortfalls and directing corrective actions.

Canada

Office of the Superintendent of Financial Institutions

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