Canada bank regulator delays capital requirement increase
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Samson
The year-long delay will give OSFI time to consider the timeline in other jurisdictions, it said last week.
Canada's financial regulator said Friday it will delay imposing stricter capital requirements on commercial banks for a year as part of a planned phase-in of Basel IV reforms.
The Office of the Superintendent of Financial Institutions was scheduled to implement the higher capital requirements well ahead of peer countries, however the one-year delay will give the regulator time to consider the implementation timeline in other jurisdictions, according to a statement released on Friday.
Scotiabank estimated the new capital rules could have forced banks to shed as much as $260 billion in assets by 2026.
One-year won't be enough, and OSFI appears to be buying some time. But it’s nice to see that Canadian regulators occasionally recognize macroeconomic context and competitive landscapes.
