Canada: regulator pushes back on tougher capital demands
17 May 2016

Canada’s financial regulator is pushing back against some of the more onerous demands placed on banks since the 2007-09 financial crisis, rejecting public health checks on lenders and allowing them to operate with lower capital buffers than overseas rivals.

Speaking at the Reuters Financial Regulation Summit, Canada’s top banking regulator said the country’s biggest lenders, which survived the crisis relatively unscathed and avoided the taxpayer-funded bailouts that rescued U.S. and European banks, may not need to hold as much capital as overseas rivals because their loan books carry less risk.

“It’s certainly not out of the question that a capital requirement that would be appropriate in some other country is higher than we think is appropriate in Canada,” Jeremy Rudin, Superintendent of Financial Institutions (OSFI), said.

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