Canada\u2019s largest banks will be required to make extra provision to offset financial risks in 2019.<\/p>\n
Twice a year the Office of the Superintendent of Financial Institutions (OSFI) sets the limit for the Domestic Stability Buffer, a requirement to maintain a financial buffer for those banks designated as important to Canada\u2019s financial system, essentially \u2018too big to fail\u2019.<\/p>\n
All the real estate news you\u2019ll need, every single month \u2013 all in CREW<\/em>. The level of the buffer was 1.5% in April but OFSI has announced this week that it will increase to 1.75% from April 2019.<\/p>\n Why the increase?<\/strong> While these elements do not pose an immediate risk, OSFI believes that Canada\u2019s big banks should make extra provisions while the going is good.<\/p>\n \u201cIn light of positive credit performance and generally stable economic conditions, now is a prudent time for banks to build resilience against future risks to the Canadian financial system,\u201d said Jamey Hubbs, Assistant Superintendent, Deposit-Taking Supervision Sector.<\/p>\n","protected":false},"excerpt":{"rendered":" Canada\u2019s largest banks will be required to make extra provision to offset financial risks in 2019. Twice a year the Office of the Superintendent of Financial Institutions (OSFI) sets the limit for the Domestic Stability Buffer, a requirement to maintain a financial buffer for those banks designated as important to Canada\u2019s financial system, essentially \u2018too […]<\/p>\n","protected":false},"author":3,"featured_media":20452,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8126"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8126"}],"version-history":[{"count":2,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8126\/revisions"}],"predecessor-version":[{"id":21595,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8126\/revisions\/21595"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/20452"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8126"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nOSFI says that while Canada\u2019s credit environment is currently favourable, there are risks from high levels of household debt relative to income, uncertainty in some housing markets, and increasing levels of corporate debt.<\/p>\n