Canada's OSFI keeps large banks' cash cushion at 3.5% amid elevated financial-sector risks and concerns over household debt.
Canada's banking regulator, OSFI, holds the cash cushion that large lenders must set aside for protection steady at 3.5%, citing elevated risks in the financial sector. The domestic stability buffer, which applies to Canada's six largest banks, will remain at 3.5% of total risk-weighted assets. Household debt remains a concern, and uncertainty persists regarding the impact of future payment shocks on household debt serviceability as many mortgages are expected to renew at higher interest rates.
June 17, 2024
15 Articles