Canadian Bank Buybacks Will Have to Wait as Pandemic Drags On
- OSFI also asked banks not to increase dividends, executive pay
- Rudin says measures won’t be reviewed amid widening lockdowns
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Canada’s top banking regulator dashed hopes that the country’s lenders will be able to follow U.S. peers in resuming share buybacks soon, saying it won’t reverse its safeguards on the financial system as the Covid-19 pandemic rages on.
The Office of the Superintendent of Financial Institutions implemented measures in March to shore up the financial system, including asking banks not to increase dividends or total executive compensation, or to repurchase shares. On Monday, Jeremy Rudin, the regulator’s head, said those measures will remain in place for the time being.