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 held its domestic stability buffer at 3.5 percent.
The buffer applies to Canada’s six largest, or systemically important, banks.
Superintendent Peter Routledge says while risks and vulnerabilities remain, Canada’s systemically important banks have entered this period of uncertainty from a position of strength thanks to the strong capital buffers.
He says the regulator is prepared to act swiftly to lower the buffer, if necessary, to ensure financial institutions remain a source of strength for the economy.
The buffer is reviewed and set every June and December, but can be changed at other times if needed.
