OSFI maintains Canada's bank stability buffer at 3.5%, signaling controlled systemic risks.

Canada's financial regulator, OSFI, has decided to keep the domestic stability buffer for the country's largest banks at 3.5%, indicating that systemic risks are under control. This buffer, designed to protect banks during economic downturns, has been held steady for the third consecutive time. All major Canadian banks currently exceed the minimum capital requirement of 11.5% of risk-weighted assets. OSFI may lower the buffer if faced with severe economic conditions.

3 months ago
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