Canada Bank Regulator Increases Capital Buffer as Risks Rise
- Buffer’s range raised to 4% to boost ability to guard system
- BMO’s capital position ‘looks a lot weaker,’ Dechaine says
This article is for subscribers only.
Canada’s banking regulator increased a key capital requirement for large banks — and raised the potential range of the measure — giving it more power to protect the country’s financial system from elevated risks.
The Office of the Superintendent of Financial Institutions said Thursday that it’s lifting the domestic stability buffer to 3% by Feb. 1, up from its current 2.5% level. The regulator also boosted the range of the buffer to as much as 4%, beyond the previous limit of 2.5%.