Bank CEOs say higher credit requirements manageable following regulator boost
BNN Bloomberg
Canadian bank CEOs say they're able to adapt to the higher credit requirements the banking regulator has set in preparation for more uncertain economic times ahead.
RBC chief executive Dave McKay says the bank will stay well above the 11 per cent stability buffer requirement even with the pending $13.5-billion acquisition of HSBC Canada, while there would be time to adapt to any further potential increases.
In December, the Office of the Superintendent of Financial Institutions raised the capital requirements banks have to keep on hand by half a percentage point, while also increasing the range of potential future increases as a potential safeguard as higher interest rates put higher stress on borrowers.
Speaking at RBC's bank CEO conference in Toronto, McKay said he doesn't expect that an increase in mortgage defaults would be a significant stress for the bank's capital as only a low single digit percentage of its overall borrowers have both a potential payment crunch and low collateral in their home.
Another climb for oil prices sent the U.S. stock market sharply lower, as hopes collapsed for a possible cut to interest rates by the Federal Reserve.
Global oil prices will continue to rise as the war in the Middle East continues and the Strait of Hormuz remains inaccessible, according to an energy expert.
Global oil prices will continue to rise as the war in the Middle East continues and the Strait of Hormuz remains inaccessible, according to an energy expert.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
Facing a $1.4 billion deficit shortfall, the provincial government says its large-animal vet service will be privatized over the next three years.
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Markets in Canada and the U.S. continued to trade lower while oil went up late morning on Friday as inflationary fears prevailed among investors.
Gold prices fell by 1.8 per cent on Friday as the dollar strengthened on a report that the United States will deploy extra troops in the Middle East, fanning concerns of higher oil prices, inflation, and with it, elevated interest rates.
Canada’s federally backed farm lender is offering financial aid to farmers, agricultural businesses and food companies hit by the spike in fertilizer and energy prices, it said on Friday.
Statistics Canada says retail sales were up 1.1 per cent at $70.7 billion in January, led by sales at motor vehicle and parts dealers.
As Qatar reels from an Iranian attack that has hobbled its giant natural gas company, its boss, who doubles as the country’s energy minister, says he had warned officials and executives of just such a danger should Iran’s own sites be hit.
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