OSFI raises capital buffer for big banks to 3% as household debt risks rise

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OSFI says high household indebtedness and a rapidly rising rate environment pose greater risks, as does geopolitical uncertainty. Read more.

The financial watchdog also increased the capital buffer’s range, or the policy tool to keep the country’s financial stability in check, to between zero and four per cent starting February 2023, rising from the previous range of zero to 2.5 per cent.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc.

If you don't see it, please check your junk folder.We encountered an issue signing you up. Please try again“This new level reflects our observations and high levels of systemic vulnerabilities have persisted and, in some cases, increased in recent quarters,” said OSFI assistant superintendent Angie Radiskovic during a Dec. 8 press conference.

 

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