As economic risks heighten, OSFI raises the amount of capital banks must keep on hand

The article discusses the recent decision by the Office of the Superintendent of Financial Institutions (OSFI) to increase the capital requirements for banks in Canada. As economic risks heighten, OSFI has raised the amount of capital that banks must keep on hand to ensure their financial stability and resilience. The article provides insights into the reasons behind this decision, including concerns about rising housing prices, household debt, and potential vulnerabilities in the financial system. The increased capital requirements aim to enhance the banks' ability to absorb potential losses and maintain the stability of the Canadian banking sector.