Latest news with #capitalbuffer
Reuters
26-06-2025
- 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
26-06-2025
- 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%.
Bloomberg
24-06-2025
- Business
- Bloomberg
Powell Says Key Capital Rule Change May Aid Treasuries Market
Federal Reserve Chair Jerome Powell said Tuesday that potential changes to a key capital buffer should bolster banks' roles as intermediaries in the US Treasuries market. 'When the leverage ratio is binding, it discourages banks from undertaking low-margin, fairly safe activities such as mediation in the Treasury markets,' Powell said at a House Financial Services Committee hearing. 'This should encourage more mediation.'
Yahoo
19-06-2025
- Business
- Yahoo
US Plans to Ease Bank Capital Rules on Treasury Trades
The top US bank regulators plan to reduce a key capital buffer for the biggest lenders by up to 1.5 percentage points following concerns that it constrained their trading in the $29 trillion Treasuries market. The Fed said on Tuesday that it plans to meet on June 25 to discuss the plan. Katanga Johnson reports on Bloomberg Television.
Yahoo
18-06-2025
- Business
- Yahoo
Breaking Open the $29 Trillion Treasury Market
Rob Holmes, Texas Capital Bancshares Chairman, President & CEO joined Bloomberg Open Interest to talk about news the top US bank regulators plan to reduce a key capital buffer by up to 1.5 percentage points for the biggest lenders after concerns that it constrained their trading in the $29 trillion Treasuries market.
