FSRA is Releasing Updated Liquidity Guidance to Support the Credit Union Sector and Protect Members
TORONTO, December 18, 2020 - The Financial Services Regulatory Authority of Ontario (FSRA) is releasing updated liquidity guidance to further enhance prudent liquidity management in the credit union sector. The new guidance will come into effect on January 1, 2021. The updates to the guidance will make targeted changes to:
- help credit union leaders ensure that assets credit unions hold for liquidity purposes are available on demand and are protected from creditors of third parties;
- assist credit unions in determining and maintaining prudent and sufficient liquidity; and
- advance FSRA’s oversight capabilities over the prudent liquidity management practices of Ontario credit unions.
FSRA will continue to review its liquidity framework for credit unions as it develops new Capital and Liquidity Rules under the recently introduced Credit Unions and Caisses Populaires Act, 2020.
The safety and protection of credit unions’ liquidity, as well as reliable access to assets held for liquidity purposes, are important for supporting the stability of the credit union sector and for protecting member deposits.
FSRA recently completed a consultation on proposed amendments to the guidance. As a result of feedback received, the guidance now better aligns timelines for new reporting requirements with existing reporting timelines, as well as clarifies when credit unions should seek legal opinions to ensure protection of their liquidity assets from creditors of third parties.
FSRA’s liquidity templates have also been updated to reflect the amendments to the liquidity guidance. Credit unions should begin using the new templates for their liquidity reporting of January data in February 2021. For December data, credit unions should use the old templates. FSRA’s Relationship Managers will be contacting credit unions directly to discuss these templates and provide any additional information that may be helpful.
- Liquidity Guidance
- Stress Testing Guidance
- Liquidity Coverage Ratio Completion Guide
- Net Cumulative Cash Flow Completion Guide
- Net Stable Funding Ratio Completion Guide
- Updated Liquidity Templates
- Consultation Summary Report
The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca
For media inquiries:
Senior Communications Officer
Financial Services Regulatory Authority
Email: [email protected]