Information Technology Activities (Foreign Banks) Regulations

Marginal note:Definitions

• 1 (1) The following definitions apply in these Regulations.

  Act

  Act means the Bank Act. (Loi)

  balance sheet value

  balance sheet value, in respect of the shares and ownership interests held by an entity, means the value reported on the entity’s balance sheet on an unconsolidated basis. (valeur au bilan)

  book value

  book value[Repealed, SOR/2008-161, s. 1]

  minority interest

  minority interest means an equity interest, in an entity that is controlled by a foreign bank, that is held by a person other than

  • (a) the foreign bank; or

  • (b) an entity controlled by the foreign bank. (participation minoritaire)

• Marginal note:Regulatory capital

  (2) In these Regulations, subject to subsection (3), the regulatory capital of a foreign bank, at any time, is the amount determined by the formula

  A - B

  where

  A

  is the total of the amounts of the shareholders’ equity, minority interests and subordinated indebtedness that are reported in the financial statements of the foreign bank; and

  B

  is the amount of goodwill that is included in the financial statements of the foreign bank.

• Marginal note:Restriction relating to security

  (3) In calculating the amount of regulatory capital under subsection (2), an amount may be included in respect of a security only if

  • (a) the security is, by its terms, subordinate in right of payment to all liabilities of the entity that issued the security other than liabilities that, by their terms, rank equally with, or are subordinate to, that security;

  • (b) the security is issued and fully paid up; and

  • (c) in respect of subordinated indebtedness or a preferred share, the security

    • (i) has an initial minimum term of five years or more or has no term, and

    • (ii) cannot be redeemed or purchased for cancellation in the first five years after it is issued.