Canada To Set Higher Capital Requirements For Key Banks
Canada's federal budget laid out plans on Thursday to impose higher capital requirements on banks whose failure could disrupt the Canadian financial system and economy, Reuters reported. Finance Minister Jim Flaherty also said the federal government would go ahead with its own capital markets regulatory framework if it cannot agree with the provinces on creating a common securities regulator. And he said the government would review how it regulates financial institutions to ensure it promotes the entry and growth of smaller financial institutions in order to foster competition that helps consumers and businesses. The new rules for "domestic systemically important banks" will parallel measures agreed by the Financial Stability Board, the financial watchdog of the Group of 20 leading economies, in response to the 2008 crisis. Read more.