The following table (beginning on page 2) describes the amendments to FSRA’s liquidity guidance documents, which were publicly consulted over the period of November 2 – December 2, 2021. The table reflects feedback received from the public consultation.
The following liquidity guidance documents have been amended and reissued:
- Guidance Note: Liquidity Guidance (2018)
- Guidance Note: Stress Testing – Credit Unions With Assets Greater Than $500 Million (2017)
- Liquidity Coverage Ratio Completion Guide (2017)
- Net Cumulative Cash Flow Completion Guide (2017)
- Net Stable Funding Ratio Completion Guide (2017)
The amendments that have been made to the liquidity guidance are specifically with the aim of promoting the safety of the assets that credit unions (CUs) hold for liquidity purposes. On November 5, 2020, the government introduced the Credit Unions and Caisses Populaires Act, 2020 and announced its intention to bring the new legislation into force in 2022. The new legislation, once proclaimed, will provide FSRA with the authority to develop rules in a number of areas, including liquidity. Over 2021, FSRA will work collaboratively with the sector to develop a new liquidity rule which will be principles-based, replace existing liquidity guidance and aim to modernize the liquidity framework for Ontario CUs.