The Financial Post reports in its Friday, Oct. 4, edition that Canada's chief banking regulator, Peter Routledge, addressed concerns about the impact of new capital floor rules on the country's largest banks at a conference in Toronto. The Post's Barbara Shecter writes that Mr. Routledge stated that the implementation of the 2017 Basel III reforms is not expected to significantly affect the capital of the top six banks. He also mentioned that the final Basel capital rules, known as Basel Endgame, are receiving significant attention both domestically and internationally. Due to the uncertainty, the Office of the Superintendent of Financial Institutions announced a one-year delay in the implementation of the capital floor rules, which are designed to ensure that banks' internal risk models align with standardized approaches. Mr. Routledge said the OSFI will probably not have more to say on the timeline for Canada's big banks to adhere to the capital floor until next summer but pledged not to extend Canada's lead on the implementing rules further in a way that would lead to inconsistency in the application of rules meant to improve stability of the global financial system following the 2008 crisis.
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