Regulatory Alerts2019-12-31
Added · Updated
Foreign Bank Branch Deposit Requirement
OSFI’s Guideline A-10 mandates authorized foreign bank branches to maintain unencumbered assets in trust with an approved Canadian financial institution as a prerequisite for commencing business. The guideline establishes deposit thresholds of $100,000 for lending branches and a minimum of $5 million (or five percent of Canadian liabilities) for full-service branches, while detailing procedures for adding, withdrawing, and reporting qualifying assets. It further standardizes deposit agreements, requires Superintendent approval for non-pre-approved asset transactions and terminations, and outlines ongoing reporting obligations to ensure continuous regulatory compliance.
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