Canada continuing to assess need for more changes to banks' capital buffers

TORONTO, April 1 (Reuters) – Canada’s financial system has the capacity to respond to further stresses and the regulator will continue to assess if additional changes to banks’ capital buffers are needed, the Office of the Superintendent of Financial Institutions (OSFI) said on Wednesday.

OSFI reduced the domestic stability buffer for banks in March to free up C$300 billion ($211.3 billion) of additional lending capacity.

While banks can treat loans subject to six-month payment deferrals as performing loans, they must meet higher capital requirements if they become non-performing beyond that period, OSFI officials said on a media call.

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