Bank Regulator ‘Gratified’ Trade War Hasn’t Hit Canada Harder

The head of Canada’s financial regulator says he’s “gratified” the US’s global trade war hasn’t caused financial-system stress following preparations for a bigger hit, though he remains on alert for a sudden downturn.

The Office of the Superintendent of Financial Institutions on Thursday left capital requirements unchanged for Canada’s largest banks in a semi-annual decision on the domestic stability buffer. While the country’s economy is softer, it’s “not sharply weaker,” said Peter Routledge, superintendent of financial institutions, adding that the regulator had stress-tested scenarios that were more severe.