OSFI

VERSABANK RECEIVES FINAL U.S. APPROVAL FOR U.S. BANK ACQUISITON

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金曜日, 6月 14, 2024
Cloud, Acquisition, OSFI, OCC, Financial institution, Culture, National Bank Act, Growth, Superintendent, Fed, RPP, Comptroller, Michael J. Hsu, Sale, VersaBank, TSX, Bank

The OCC approval is the second and final U.S. regulatory approval required for VersaBank to proceed with the Stearns Holdingford acquisition.

Key Points: 
  • The OCC approval is the second and final U.S. regulatory approval required for VersaBank to proceed with the Stearns Holdingford acquisition.
  • VersaBank will now seek approval for the Stearns Holdingford acquisition from its Canadian regulator, the Office of the Superintendent of Financial Institutions (OSFI).
  • Stearns Financial, a multi-bank holding company owning two additional and separate national bank charters, Stearns Bank Upsala National Association and Stearns Financial's flagship and largest national bank, Stearns Bank National Association (headquartered in St.
  • "It speaks volumes that our Canadian neighbor, VersaBank, has chosen Holdingford as its home base for entry into the U.S. market," said Heather Plumski, President of Stearns Bank Holdingford.

Green Bubbles about to Burst but Canadian Banking Sector Presses on with NetZero Obsession says Friends of Science Society

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木曜日, 5月 9, 2024
Copper, Collusion, Climate change, Post, Language, Glacier Media, EVS, Flood, Interview, Risk, Climate, Friends, Science Society of China, IEA, Le Monde, New York Post, OSFI, Insurance, Nonsense, AB, IPCC, Wildfire, Telegraphy, Bank, Real-time, Financial institution, Policy, Wind, Tax, EV, Conrad Black, Poverty, NetZero, Optimism, Superintendent, ESG, JPMorgan Chase, National Post, Financial Times, Friends of Science

CALGARY, AB, May 9, 2024 /PRNewswire-PRWeb/ -- On April 27, 2024, the National Post published an op-ed by Conrad Black, titled "Washing Away the Climate Lunatics – Canada at risk of turning into Europe" which referred to "Europe's NetZero Rebellion," a recent Friends of Science Society event.

Key Points: 
  • As copper reaches $10,000/t, an essential component for all things NetZero, the Canadian banking sector presses on with mandatory climate risk disclosures and a NetZero obsession, says Friends of Science Society.
  • Green bubbles are about to burst; much needed pragmatic voices like Dr. Judith Curry's "Climate Risk and Uncertainty" can break the spell.
  • Green bubbles are about to burst, says Friends of Science Society.
  • Friends of Science Society suggests that the reputational risks from promoting NetZero nonsense may be far more detrimental to the financial community than climate change impacts.

Riskthinking.AI Climate Risk Data Selected by OSFI and AMF to Power Mandatory Climate Scenario Analysis

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木曜日, 4月 11, 2024
Climate change, AMF, Climate, OSFI, Financial institution, Exercise, Superintendent, Bloomberg, Multimedia, Guideline, Cryptocurrency

The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada.

Key Points: 
  • The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada.
  • The AMF considers climate risks to be among the most significant facing the economy in terms of its potential impact.
  • The AMF's Climate Risk Management Guideline , currently in public consultation, will come into effect in 2024.
  • "It's the latest example of our data and analytics platform helping model climate risk."

Riskthinking.AI Climate Risk Data Selected by OSFI and AMF to Power Mandatory Climate Scenario Analysis

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木曜日, 4月 11, 2024
Bloomberg, Financial institution, Exercise, Climate change, OSFI, Guideline, AMF, Superintendent, Climate, Cryptocurrency

The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada.

Key Points: 
  • The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada.
  • The AMF considers climate risks to be among the most significant facing the economy in terms of its potential impact.
  • The AMF's Climate Risk Management Guideline , currently in public consultation, will come into effect in 2024.
  • "It's the latest example of our data and analytics platform helping model climate risk."

Decomposing systemic risk: the roles of contagion and common exposures

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火曜日, 4月 23, 2024
Tao, CIBC, Tax, RWA, Risk, European Systemic Risk Board, Research Papers in Economics, Contagion, RT, The Big Six, NBC, International, Shock, Observation, Bank of Canada, HTC, European Economic Association, The Washington Post, Great, JPMorgan Chase, Paper, GM, Environment, Political economy, Journal of Financial Economics, COVID-19, Perception, BNS, Website, Silicon, IAT, Cifuentes, Probability, Balance sheet, RAN, Medical classification, Algorithm, Information technology, Quarterly Journal of Economics, LN, Nature, European Journal, Royal Bank of Canada, Technical report, Journal of Political Economy, Equitable Bank, Bankruptcy, RAI, PDF, Private, ECB, Policy, CHS, Supercapacitor, Social science, Journal of Financial Stability, Intelligence (journal), Elsevier, Home, Cambridge University Press, Journal, Springer Science+Business Media, Research, Classification, Regulation, News, EQB, Credit, Literature, AIK, European Central Bank, COVID, SVAR, Section 5, Management science, DRA, M4, VL, National bank, Government, ISSN, BMO, Panel, International Financial Reporting Standards, BIS, FIS, Basel III, Commerce, Scotiabank, C32, Econometric Society, Interbank, Fraud, Section 4, Bank, Schedule, VAR, Section 3, The Journal of Finance, RBC, Volcanic explosivity index, Fire, Wassily Leontief, Financial economics, Metric, Section 2, L14, Central bank, Superintendent, Bank of Montreal, Kronecker, BOC, Lithium, BCBS, Sale, Macroeconomic Dynamics, Christophe, CWB, LBC, NHA, Imperial Bank, Private equity, Quarterly Journal, National Bank of Canada, C51, Canadian Western Bank, Currency crisis, JEL classification codes, Victor Drai, L.1, MFC, Silicon Valley Bank, EB, Laurentian Bank of Canada, Federal, RA1, Series, W0, FEVD, Journal of Econometrics, Aggregate, University, FRB, MB, Financial institution, Element, Health, Book, Angels & Airwaves, Common, OSFI, GFC, Reproduction, K L, Systematic, Housing, G21, Home Capital Group, Communications satellite

Abstract

Key Points: 
    • Abstract
      We evaluate the effects of contagion and common exposure on banks? capital through
      a regression design inspired by the structural VAR literature and derived from the balance
      sheet identity.
    • Contagion can occur through direct exposures, fire sales, and market-based
      sentiment, while common exposures result from portfolio overlaps.
    • First, we document that contagion varies in time, with the highest levels
      around the Great Financial Crisis and lowest levels during the pandemic.
    • Our new framework complements
      traditional stress-tests focused on single institutions by providing a holistic view of systemic risk.
    • While existing literature presents various contagion narratives, empirical findings on
      distress propagation - a precursor to defaults - remain scarce.
    • We decompose systemic risk into three elements: contagion, common exposures, and idiosyncratic risk, all derived from banks? balance sheet identities.
    • The contagion factor encompasses both sentiment- and contractual-based elements, common exposures consider systemic
      aspects, while idiosyncratic risk encapsulates unique bank-specific risk sources.
    • Our empirical analysis of the Canadian banking system reveals the dynamic nature of contagion, with elevated levels observed during the Global Financial Crisis.
    • In conclusion, our model offers a comprehensive lens for policy intervention analysis and
      scenario evaluations on contagion and systemic risk in banking.
    • This
      notion of systemic risk implies two key components: first, systematic risks (e.g., risks related
      to common exposures) and second, contagion (i.e., an initially idiosyncratic problem becoming
      more widespread throughout the financial system) (see Caruana, 2010).
    • In this paper, we decompose systemic risk into three components: contagion, common exposures, and idiosyncratic risk.
    • First, we include contagion in three forms: sentiment-based contagion, contractual-based
      contagion, and price-mediated contagion.
    • In this context,
      portfolio overlaps create common exposures, implying that bigger overlaps make systematic
      shocks more systemic.
    • With the COVID-19 pandemic starting
      in 2020, contagion drops to all time lows, potentially related to strong fiscal and monetary
      supports.
    • That is, our
      structural model provides a framework for analyzing the impact of policy interventions and
      scenarios on different levels of contagion and systemic risk in the banking system.
    • This provides a complementary approach to
      seminal papers that took a structural approach to contagion, such as DebtRank Battiston et al.
    • More generally, the literature on networks and systemic risk started with Allen and Gale
      (2001) and Eisenberg and Noe (2001).
    • The matrix is structured as follows:
      1

      In our model, we do not distinguish between interbank liabilities and other types of liabilities.

    • In other words, we can and aim to estimate different degrees
      of contagion per asset class, i.e., potentially distinct parameters ?Ga .
    • For that, we build three major
      metrics to check: average contagion, average common exposure, and average idiosyncratic risk.
    • N i j

      et ,
      Further, we define the (N ?K) common exposure matrix as Commt = [A

      (20)

      et ]diag (?C
      ?L

      such that average common exposure reads,
      average common exposure =

      1 XX
      Commik,t .

    • N i j

      (22)

      20

      ? c ),

      The three metrics?average contagion, average common exposure, and average idiosyncratic risk?provide a comprehensive framework for understanding banking dynamics.

    • Figure 4 depicts the average level of risks per systemic risk channel: contagion risk, common exposure, and idiosyncratic risk.
    • Figure 4: Average levels of contagion (Equation (20)), common exposure (Equation (21)), and idiosyncratic risk
      (Equation (22)).
    • The market-based contagion is the contagion due to
      investors? sentiment, and the network is an estimate FEVD on volatility data.
    • For most of
      the sample, we find that contagion had a bigger impact on the variance than common exposures.

OSFI continues building climate resilience

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水曜日, 3月 20, 2024
Superintendent, OSFI, Financial institution, Guideline

OTTAWA, ON, March 20, 2024 /CNW/ - Today, the Office of the Superintendent of Financial Institutions (OSFI) released updates to Guideline B-15: Climate Risk Management .

Key Points: 
  • OTTAWA, ON, March 20, 2024 /CNW/ - Today, the Office of the Superintendent of Financial Institutions (OSFI) released updates to Guideline B-15: Climate Risk Management .
  • OSFI is also releasing new Climate Risk Returns that will collect standardized climate-related data on emissions and exposures from FRFIs.
  • The data provided will allow OSFI to carry out evidence-based policy development, regulation, and supervision related to climate risks.
  • "Over the last year, OSFI has made significant progress in promoting robust climate risk management by financial institutions.

VERSABANK REPORTS RESULTS FOR FIRST QUARTER FISCAL 2024: CONTINUED ROBUST GROWTH IN POINT-OF-SALE RECEIVABLE PURCHASE PROGRAM DRIVES 41% YEAR-OVER-YEAR INCREASE IN EPS TO ANOTHER NEW RECORD[1]

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水曜日, 3月 6, 2024
Acquisition, ROCE, Commercial property, Real estate, CMHC, VersaBank, OCC, POS, CRE, Growth, Computer security, Calendar, Digital, OSFI, Commercial, Consolidated, DRTC, Common equity, RPP

While this had a slight dampening effect on first quarter results, we expect that this strategic adjustment will enhance ROE and contribute to stronger growth in subsequent quarters throughout the year."

Key Points: 
  • While this had a slight dampening effect on first quarter results, we expect that this strategic adjustment will enhance ROE and contribute to stronger growth in subsequent quarters throughout the year."
  • "2024 is unfolding slightly ahead of expectations for our Point-of-Sale Receivable Purchase Program, providing continued confidence in our ability to surpass our next total asset milestone of $5 billion during the 2024 fiscal year.
  • Total assets increased 22% year-over-year and 3% sequentially to a record $4.3 billion, with the increase driven primarily by 7% growth in Digital Banking Operations' Point of Sale Receivable Purchase Program (POS/RPP) portfolio.
  • DBG's gross profit amounts are included in DRTC's consolidated revenue which is reflected in non-interest income in VersaBank's consolidated statements of income and comprehensive income.

Elon Musk's Carbon Tax Promo Fails says Friends of Science Society

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木曜日, 2月 22, 2024
Tax, Reality Check, COP28, Parent, OSFI, Climate emergency, Climate change, Human, COP26, UNFCCC, House, Fear, Legislation, Energy, Friends, RCP, Bank, Friends of Science, BOC, NetZero, Climate, Science Society of China, ENGO, BIS, Commons, Cato Institute, Conference, Bank of Canada, Environment, FUND, GHG, Public policy, Poverty, Government, Projection, No Reason, Musk, Bangladesh Technical Education Board, Superintendent, Failure, Financial institution, Renewable energy

CALGARY, Alberta, Feb. 22, 2024 /PRNewswire-PRWeb/ -- "Elon Musk's Unbelievably Simple Killer Break Down on Climate Change" - a video released on Feb. 03, 2024, which promotes a carbon tax, is a failure, says Friends of Science Society. As reported by the CATO Institute on Feb. 08, 2024, the video's voice over recycles a speech Elon Musk gave at the Panthéon‐Sorbonne University in Paris, coincident to the Paris "COP21" Climate Conference in 2015.

Key Points: 
  • Elon Musk's video promoting the notion of a carbon tax as a means to mitigate climate change is a ''failure'' says Friends of Science Society, referring to Canada's disastrous experience with carbon tax and inflation.
  • CALGARY, Alberta, Feb. 22, 2024 /PRNewswire-PRWeb/ -- " Elon Musk's Unbelievably Simple Killer Break Down on Climate Change " - a video released on Feb. 03, 2024, which promotes a carbon tax, is a failure, says Friends of Science Society.
  • Numerous academics and economists back the carbon tax as 'the solution' to climate change, but Friends of Science Society calls this " CarbonTax – a-philia : Unnatural Love of Carbon Taxes for No Reason."
  • Friends of Science Society says Canada's experience with carbon tax and rebate shows the method fails to reduce emissions while simultaneously driving up inflation.

OSFI releases new Supervisory Framework to modernize financial supervision

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木曜日, 2月 8, 2024
Organization, Framework, Risk assessment, Risk, Financial institution, Benchmarking, Superintendent, OSFI, Pension fund

OTTAWA, ON, Feb. 8, 2024 /CNW/ - Today, the Office of the Superintendent of Financial Institutions (OSFI) released its new framework for supervision.

Key Points: 
  • OTTAWA, ON, Feb. 8, 2024 /CNW/ - Today, the Office of the Superintendent of Financial Institutions (OSFI) released its new framework for supervision.
  • The Framework will guide OSFI's supervision of federally regulated financial institutions and private pension plans.
  • The new framework is the most significant change to OSFI's supervisory approach in 25 years.
  • "We are launching a new supervisory framework on April 1, 2024, to ensure a faster, more effective response to critical risks faced by federally regulated financial institutions and private pension plans.

OSFI named as a 2024 National Capital Region Top 100 Employer

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火曜日, 2月 6, 2024
Financial institution, National Capital Region (Canada), Superintendent, Capital region, OSFI

OTTAWA, ON, Feb. 6, 2024 /CNW/ - The Office of the Superintendent of Financial Institutions (OSFI) is once again one of the National Capital Region's top employers.

Key Points: 
  • OTTAWA, ON, Feb. 6, 2024 /CNW/ - The Office of the Superintendent of Financial Institutions (OSFI) is once again one of the National Capital Region's top employers.
  • This is the fourth consecutive year that OSFI has received this honour.
  • This special designation recognizes employers in the Ottawa-Gatineau metropolitan area that are industry leaders in providing exceptional places to work.
  • While the award is specific to the National Capital Region, it recognizes the hard work and dedication of OSFI employees across the country.