Bank towers are shown in Toronto's financial district on Wednesday, June 16, 2010. Canada's financial regulator is raising the amount of capital the country's major banks need to have on hand to cover potential losses again.THE CANADIAN PRESS/Adrien Veczan
OTTAWA – Canada’s financial regulator is raising the amount of capital the country’s major banks need to have on hand to cover potential losses.
The Office of the Superintendent of Financial Institutions says the domestic stability buffer will increase by half a percentage point to 3.5 per cent, effective Nov. 1.
It follows a move in December by the regulator to increase the buffer by half a percentage point to three per cent.
The federal regulator says current vulnerabilities facing the banking industry include high household and corporate debt levels, the rising cost of debt and increased global uncertainty around fiscal and monetary policy,
The domestic stability buffer applies to Canada’s six largest banks, known as domestic systemically important banks.
It is reviewed and set every June and December, but can be changed at other times if needed.
This report by The Canadian Press was first published June 20, 2023.
