Canada's financial regulator lowers stability buffer for big banks, allowing them to lend more

Royal Bank of Canada

19/06/2026 13:45

    TORONTO, June 19 (Reuters) - Canada's financial regulator on
Friday lowered the capital requirement for the country's biggest
banks for the first time in three years, a move that will allow
the banks to lend more as the government seeks to boost
investment in AI, resources and other areas during trade and
geopolitical uncertainties.
    The Office of the Superintendent of Financial Institutions
(OSFI), which oversees the banks to ensure financial stability,
lowered the domestic stability buffer (DSB) to 3% from 3.5%. The
regulator had last increased the buffer in June 2023.
The changes to the DSB- applicable to Royal Bank of Canada
RY.TO, TD Bank TD.TO, BMO BMO.TO, Bank of Nova Scotia BNS.TO,
CIBC CM.TO and National Bank of Canada NA.TO-  is effective
immediately, OSFI said.

(Reporting by Nivedita Balu in Toronto; Editing by Caroline
Stauffer)
(( Nivedita.Balu@thomsonreuters.com ; +1-343-401-6776))