OTTAWA – The federal banking regulator says the amount of money Canada’s big banks must keep on hand in case of economic shock will stay at its current level.
The Office of the Superintendent of Financial Institutions says the hold reflects its view that the risks facing the financial system remain generally stable.
It says the domestic stability buffer will remain at 3.5 per cent, a level that has been in effect since Nov. 1, 2023.
Peter Routledge, the superintendent of financial institutions, says the level reflects the resilience of systemically important banks to absorb losses from unanticipated downside shocks.
The domestic stability buffer applies to Canada’s six largest banks, known as domestic systemically important banks.
It 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. 17, 2024.
