Bloomberg News

Canada Bank Regulator to Release Capital Rules Next Week

December 06, 2012

Canada’s banking regulator will release its final Basel III capital adequacy rules next week with some minor changes from guidelines released earlier this year, a spokeswoman said.

The final guidelines include “a few minor tweaks from the draft as a result of comments received during the consultation period and developments in other jurisdictions,” said Leonie Roux, communications officer at the Office of the Superintendent of Financial Institutions.

Some nations are struggling to meet a Jan. 1, 2013, deadline for starting to apply the revised Basel rules, which were drawn up by global regulators to prevent a repeat of the financial crisis that followed the collapse of Lehman Brothers Holdings Inc.

While declining to comment on the changes, Roux said that OSFI has told banks they should “plan to hold enough capital” to meet standards stipulated by the Basel Committee on Banking Supervision by the beginning of 2013 even though countries have until 2019 to fully apply the Basel III rules.

“This is prudent given the current environment; Canadian banks are currently well positioned to meet or exceed this expectation,” Roux said.

Canadian Imperial Bank of Commerce, Canada’s fifth-largest bank, said today in a quarterly earnings report its estimated common equity Tier 1 ratio is 9 percent, compared with the 7 percent minimum requirement proposed by the Basel Committee and OSFI.

Toronto-Dominion Bank (TD), the nation’s second-largest lender which also reported quarterly results today, said its estimated Tier 1 ratio is 8.2 percent, exceeding “the new 7 percent requirement on a fully-phased in basis.”

To contact the reporters on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.net; Greg Quinn in Ottawa at gquinn1@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus