By: Financial Post
March 15, 2020
Ottawa is loosening capital requirements for Canada’s biggest banks, but asking lenders not to buy back shares or hike dividends with the extra cash, as the federal government and regulators moved Friday to bolster the financial system.
Finance Minister Bill Morneau, Superintendent of Financial Institutions Jeremy Rudin and Bank of Canada Governor Stephen Poloz gathered in Ottawa to announce the plan of attack, which comes as the coronavirus and a sudden drop in oil prices have rattled the global economy and markets.
One measure being deployed is that the Office of the Superintendent of Financial Institutions is reducing the amount of capital Canada’s six biggest banks must carry.