An Edmonton man says he was in the wrong place at the wrong time when he was injured by members of the Edmonton Police Service last year.
Financial regulator raises stability buffer amid higher debt levels, systemic risks
Canada's financial regulator is raising the amount of capital major banks need to have on hand over concerns of high household debt levels and other elevated systemic vulnerabilities.
The Office of the Superintendent of Financial Institutions said Thursday the domestic stability buffer will go up by half a percentage point to three per cent as of Feb. 1, 2023. It also increased the possible range of future adjustments to between zero and four per cent, rather than the previous top end of 2.5 per cent.
The adjustment comes as debt levels and delinquencies remain fairly stable while debt service costs are on the rise, OSFI chief risk officer Angie Radiskovic told reporters.
"Clearly, we're in a risk environment now where levels of indebtedness have grown. We've got high inflation, we've got rising interest rates and a lot of our thinking is holding around those types of risks," Radiskovic said.
By raising the amount of money banks need to set aside, it gives the regulator more room to lower the capital requirements when a downturn hits to give banks access to potentially needed extra funds.
Radiskovic said the adjustments come as the economic risk profile has changed considerably this year, enough to prompt the regulator to release an unplanned update to its outlook in October.
"Things have moved so significantly, the vulnerabilities have grown and the risk landscape is changing so quickly, that we issued or updated the annual risk outlook."
Radiskovic said the buffer increases will boost the stability of major banks and public confidence in the financial system.
The stability buffer, which applies to domestic systemically important banks, was launched in 2018 and is set twice a year, but can be changed at other times if needed.
The latest increase will put the bank total common equity tier one ratio needed at 11 per cent when it comes into force in February.
The increase, which gives banks less than the usual four months to increase their buffers, comes as several Canadian banks are working though major acquisitions that will pull down their ratios, but the regulator said it considered the ability of banks to meet the requirement when setting it.
Bank of Montreal said on its latest earnings call that it expected its ratio could fall below 11 per cent if its US$13.4-billion takeover of Bank of the West closes in the first quarter, but expects it to rise above that level by the second quarter, which for the banks begins at the start of February.
This report by The Canadian Press was first published Dec. 8, 2022.
CTVNews.ca Top Stories
Air Canada union head says she'll resign if pilots reject deal
The head of the Air Canada pilots union says she'll step down if members opt not to approve a tentative deal with the airline, raising the stakes as aviators mull whether to accept hefty salary gains or drive an even harder bargain.
Toronto police say they are searching for a suspect who allegedly shot and killed his brother in an argument at a Scarborough housing complex late Saturday night.
John Mulaney and Olivia Munn have second child, a daughter named Mei
Comedian John Mulaney and actor Olivia Munn now have a second child, a daughter named Mei June Mulaney.
Kate, the Princess of Wales, makes first public appearance after cancer treatment
Kate, the Princess of Wales, made her first public appearance Sunday since she announced she had completed chemotherapy and would return to some public duties.
2 suspended from U.S. college swim team after report of slur scratched onto student's body
At least two students at Gettysburg College in Pennsylvania have been suspended from the swim team after a report that a racial slur was scratched onto a student's body, officials said.
How does your health measure up? Criticism of long-time tool used to track progress
Body mass index, a long-time tool used to measure a person's health, may soon be out the door as some health professionals push for a system they say is more accurate.
North Carolina's Robinson, omitted from Trump rally, avoids comment on report about online posts
North Carolina Lt. Gov. Mark Robinson avoided directly weighing in during a gubernatorial campaign event Saturday on a CNN report outlining evidence that he made disturbing posts on a pornography website's message board more than a decade ago.
Netanyahu considering plan to force all Palestinian civilians out of northern Gaza to besiege Hamas
Israeli Prime Minister Benjamin Netanyahu is considering a plan to force all Palestinian civilians out of northern Gaza, including Gaza City, in order to lay siege to Hamas and force the release of hostages.
Local Spotlight
Cole Haas is more than just an avid fan of the F.W. Johnson Wildcats football team. He's a fixture on the sidelines, a source of encouragement, and a beloved member of the team.
Getting a photograph of a rainbow? Common. Getting a photo of a lightning strike? Rare. Getting a photo of both at the same time? Extremely rare, but it happened to a Manitoba photographer this week.
An anonymous business owner paid off the mortgage for a New Brunswick not-for-profit.
They say a dog is a man’s best friend. In the case of Darren Cropper, from Bonfield, Ont., his three-year-old Siberian husky and golden retriever mix named Bear literally saved his life.
A growing group of brides and wedding photographers from across the province say they have been taken for tens of thousands of dollars by a Barrie, Ont. wedding photographer.
Paleontologists from the Royal B.C. Museum have uncovered "a trove of extraordinary fossils" high in the mountains of northern B.C., the museum announced Thursday.
The search for a missing ancient 28-year-old chocolate donkey ended with a tragic discovery Wednesday.
The Royal Canadian Mounted Police is celebrating an important milestone in the organization's history: 50 years since the first women joined the force.
It's been a whirlwind of joyful events for a northern Ontario couple who just welcomed a baby into their family and won the $70 million Lotto Max jackpot last month.