OSFI raises capital buffer for big banks to 3% as household debt risks rise.

The Office of the Superintendent of Financial Institutions raised the capital buffer financial institutions must hold to three per cent, citing increased risked from high household indebtedness and the rapid rise in interest rates.

The financial watchdog also increased the capital buffer’s range, or the policy tool to keep the country’s financial stability in check, to between zero and four per cent starting February 2023, rising from the previous range of zero to 2.5 per cent.

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