OTTAWA – Canada’s federal banking regulator says it is keeping its domestic stability buffer unchanged at 3.5 per cent as it judges major vulnerabilities in the banking system remain elevated but are stable.
The buffer is the amount of money Canada’s big banks must keep on hand in case of economic shock.
It applies to Canada’s six largest, or systemically important, banks.
The Office of the Superintendent of Financial Institutions says Canadian household debt relative to income remains high but relatively stable and below historical peaks given softer conditions in the housing market.
It adds that Canadian corporate debt growth has moderated but credit quality is vulnerable to trade-related headwinds.
The buffer is reviewed and set every June and December, but can be changed at other times if needed.
This report by The Canadian Press was first published Dec. 18, 2025.
