Latest news with #PeterRoutledge
CTV News
8 hours ago
- Business
- CTV News
OSFI keeps domestic stability buffer on hold at 3.5 per cent
The Bay Street Financial District is shown with the Canadian flag in Toronto on Friday, Aug. 5, 2022. THE CANADIAN PRESS/Nathan Denette OTTAWA — The federal banking regulator says the amount of money Canada's big banks must keep on hand in case of economic shock will stay at its current level. The Office of the Superintendent of Financial Institutions held its domestic stability buffer at 3.5 per cent. The buffer applies to Canada's six largest, or systemically important, banks. Superintendent Peter Routledge says while risks and vulnerabilities remain, Canada's systemically important banks have entered this period of uncertainty from a position of strength thanks to the strong capital buffers. He says the regulator is prepared to act swiftly to lower the buffer, if necessary, to ensure financial institutions remain a source of strength for the economy. The buffer 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 26, 2025.
Reuters
9 hours ago
- Business
- Reuters
Canada banking regulator maintains key capital limit for big lenders
OTTAWA, June 26 (Reuters) - Canada's financial regulator said on Thursday it was maintaining the amount of capital the country's biggest lenders must hold, saying the uncertainties related to U.S.-Canada trade tensions were not stressing the financial system. The Office of the Superintendent of Financial Institutions (OSFI), which oversees the banks to ensure financial stability, maintained the domestic stability buffer (DSB) at 3.5%. "The uncertainty caused by rising trade disputes has not manifested itself in indicators of financial system stress," Superintendent Peter Routledge said in a press briefing. "We continue to assess potential impacts that a global trade conflict could have on the Canadian economy, with a special focus on spillovers to the financial system." Trade tensions between the U.S. and Canada, and U.S. President Donald Trump's tariffs have hurt trade, investments and jobs on both sides of the border. With ongoing tensions in the Middle East, Routledge said banks have "plenty of resilience" to absorb a more significant shock in financial markets caused by geopolitical tensions. The DSB is additional capital that Canada's big six banks must set aside to cover losses during financial uncertainties to ensure stability in Canada's economy. The buffer level is determined by various factors that include consumer debt levels, major fluctuations in the housing market and asset values. The DSB has a range from 0% to 4%.
Yahoo
10 hours ago
- Business
- Yahoo
Canada banking regulator maintains key capital limit for big lenders
OTTAWA (Reuters) -Canada's financial regulator said on Thursday it was maintaining the amount of capital the country's biggest lenders must hold, saying the uncertainties related to U.S.-Canada trade tensions were not stressing the financial system. The Office of the Superintendent of Financial Institutions (OSFI), which oversees the banks to ensure financial stability, maintained the domestic stability buffer (DSB) at 3.5%. "The uncertainty caused by rising trade disputes has not manifested itself in indicators of financial system stress," Superintendent Peter Routledge said in a press briefing. "We continue to assess potential impacts that a global trade conflict could have on the Canadian economy, with a special focus on spillovers to the financial system." Trade tensions between the U.S. and Canada, and U.S. President Donald Trump's tariffs have hurt trade, investments and jobs on both sides of the border. With ongoing tensions in the Middle East, Routledge said banks have "plenty of resilience" to absorb a more significant shock in financial markets caused by geopolitical tensions. The DSB is additional capital that Canada's big six banks must set aside to cover losses during financial uncertainties to ensure stability in Canada's economy. The buffer level is determined by various factors that include consumer debt levels, major fluctuations in the housing market and asset values. The DSB has a range from 0% to 4%.
Yahoo
11 hours ago
- Business
- Yahoo
OSFI maintains big banks' stability buffer at 3.5%
The Office of the Superintendent of Financial Institutions (OSFI) has maintained the domestic stability buffer for Canada's six largest banks at 3.5 per cent. The buffer was created as a 'rainy day' cushion to absorb unanticipated financial shocks. 'Conditions are .. better than our planning assumptions earlier in the year,' Peter Routledge, superintendent of OSFI, said Thursday. He said concern a trade war with the United States would lead to economic upheaval 'has not manifested itself in financial system stress.' The big banks entered the period of potential disruption in a 'position of strength,' Routledge said, with capital fortified in recent years and a total CET1 capital level of 13.6, on average. Moreover, other concerns that could lead to financial system vulnerabilities, such as household debt, have come down, while still remaining at a historically high level. He noted, however, that many Canadians will renew their mortgages at higher interest rates over the next 18 months than when the home loans were taken in 2020 and 2021, which will put 'financial pressure' on some households. 'We remain ready to respond should conditions change,' he said, adding that OSFI can act 'with urgency when necessary.' OSFI lowers the domestic stability buffer in times of stress, such as during the COVID-19 pandemic, to give the banks more room to continue extending loans and maintain liquidity in markets. It can also be raised in good time, with a cap of four per cent. OSFI kept the buffer stable at 3.5 per cent in December, saying the country's systemically important banks had sufficient capacity to absorb losses from unanticipated shocks and maintain critical services such as lending. But that was before U.S. president Donald Trump kicked off a global trade war that first targeted Canada and Mexico. In February, as economists were warning about the potential damage from tariffs and counter-tariffs, OSFI indefinitely paused the implementation of new global regulatory rules for banks and Routledge said he was considering responses to the trade war that would be along the lines of relief offered during the pandemic in 2020. Financial innovation will require regulators to embrace risk, OSFI head says Bank runs are still a risk to the financial system, global agency warns A key adjustment OSFI made at that time was to allow banks to treat mortgages and business loans as performing even when payments were deferred, thereby leaving the amount of capital that had to be held against them unaffected. The regulator also temporarily relaxed covered bond limits to give banks greater access to Bank of Canada facilities, and introduced transitional arrangements for the capital treatment of expected loss provisions under the Basel III framework. • Email: bshecter@ Sign in to access your portfolio
