"Our AIRB journey will continue to follow an iterative process as our AIRB models and tools move into a parallel run phase," said
"We are actively using the majority of our AIRB tools to manage credit risk, including comprehensive stress testing, internal capital adequacy assessment, and expected credit loss. Until we receive final approval, our regulatory capital ratios will continue to be measured on the Standardized basis. Approval of our transition to the AIRB approach will result in improved risk-sensitive capital ratios that better reflect the strength of our balance sheet. Combined with the launch of our digital capabilities, AIRB approval will enable us to deliver increased competition in Canadian financial markets, support higher growth and achieve further diversification, with an enhanced view of risk."
"We continue to expect AIRB to create long-term meaningful and lasting value for shareholders and this delay in timing of approval does not change our view".
About
Forward-looking Statements
From time to time, we make written and verbal forward-looking statements. Statements of this type are included in our Annual Report and reports to shareholders and may be included in filings with Canadian securities regulators or in other communications such as press releases and corporate presentations. Forward-looking statements include, but are not limited to, statements about our objectives and strategies, targeted and expected financial results and the outlook for CWB's businesses or for the Canadian economy. The forward-looking statements in this press release include statements about the anticipated approval and timing of CWB's transition to the AIRB approach and the anticipated benefits of the transition. Forward-looking statements are typically identified by the words "believe", "expect", "anticipate", "intend", "estimate", "may increase", "may impact", "goal", "focus", "potential", "proposed" and other similar expressions, or future or conditional verbs such as "will", "should", "would" and "could".
By their very nature, forward-looking statements involve numerous assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations and conclusions will not prove to be accurate, that our assumptions may not be correct and that our strategic goals will not be achieved.
A variety of factors, many of which are beyond our control, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, but are not limited to, general business and economic conditions in
Additional information about these factors can be found in the Risk Management section of our interim and/or annual Management's Discussion and Analysis (MD&A). These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause our actual results to differ materially from the expectations expressed in such forward-looking statements. Unless required by securities law, we do not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by us or on our behalf. The forward-looking statements contained in this document are presented for the purpose of assisting readers in understanding our financial position and results of operations as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.
Assumptions about the performance of the Canadian economy over the forecast horizon and how it will affect our businesses are material factors considered when setting organizational objectives and targets. In determining expectations for economic growth, we consider our own forecasts, economic data and forecasts provided by the Canadian government and its agencies, as well as certain private sector forecasts. These forecasts are subject to inherent risks and uncertainties that may be general or specific.
Where relevant, material economic assumptions underlying forward-looking statements are disclosed within the Outlook section of our annual MD&A. The emergence of COVID-19 has cast uncertainty on each of these assumptions and there can be no assurance that they continue to be valid. Given the rapid pace of change, it is premature to make further assumptions about these matters. The full extent of the impact that COVID-19, including government and/or regulatory responses to the outbreak, will have on the Canadian economy and our business is highly uncertain and difficult to predict at this time. See the Financial Results and Outlook and Risk Management sections of our interim MD&A for more information.
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