By Paul Vieira
OTTAWA--Canada's bank regulator kept a key gauge of capital stored by the country's major lenders unchanged, arguing vulnerabilities and risks in the financial system remain generally stable.
The Office of the Superintendent of Financial Institutions said Tuesday the domestic stability buffer, the store of capital that banks must have on hand to be able to absorb losses and continue lending during times of stress, will remain at 3.5% of risk-weighted assets. The regulator last issued a decision on the buffer in June.
The decision was widely expected. The C.D. Howe Institute, a Toronto think tank, said the buffer should remain unchanged because, among other things, the economy is weak, and tightening financial conditions risk unnecessarily slowing credit.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
12-17-24 0911ET