Topic: Capital adequacy

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New restrictions announced for residential mortgages

The Canadian government continues to be concerned with the escalation in house prices in Canada, particularly in Toronto and Vancouver.  While the government will not say that it considers these markets to be overvalued, clearly, there is concern that the extended period of low interest rates has caused homeowners to be overextended.  On December 11th, … Continue Reading

OSFI Finalizes New Liquidity Test for Banks

On October 31st, the Office of the Superintendent of Financial Institutions (OSFI) released the final version of its new Leverage Requirements Guideline.  The Guideline is based on the BCBS publication Basel III Leverage Ratio Framework and Disclosure Requirements and implements the Basel leverage ratio requirement for Canadian banks and federally regulated deposit-taking institutions.  Unlike the … Continue Reading

Canada publishes consultation on bail-in regime

The Canadian government recently published for comment a consultation paper on a proposed bail-in regime applicable to Canada’s domestic systemically important banks (D-SIBs). The bail-in regime, formally referred to as a Taxpayer Protection and Bank Recapitalization Regime, would grant to the Government of Canada the power to permanently convert “eligible liabilities” of the D-SIB into … Continue Reading