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☆ Canada financial regulator seeks feedback on crypto disclosures
▼ + stars: | 2023-11-20 | by ( ) www.reuters.com time to read: +1 min

Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsNov 20 (Reuters) - Canada's financial watchdog said on Monday it was seeking feedback on the public disclosure of cryptocurrency assets by federally regulated financial institutions, joining global regulators in ramping up scrutiny on the volatile sector. The consultation by Canada's Office of the Superintendent of Financial Institutions (OSFI) comes after the agency in July proposed new guidelines for crypto assets citing a risky environment. The OSFI's consultation will be running alongside another from the Basel Committee on Banking Supervision (BCBS), a global supervisory body which has also sought feedback from internationally active banks on the disclosure of crypto-asset exposures. Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Persons: Dado Ruvic, Arasu Kannagi Basil, Devika Organizations: REUTERS, Canada's Office, Banking, Thomson Locations: Basel, Bengaluru

With the economy slowing and adding fewer jobs, banks are anticipating more consumers could default on credit-card payments and mortgages, hurting profits. "(Canadian banks) are running a little bit tighter in capital than they have in the past," said Adrienne Young, director of corporate credit research at Franklin Templeton Canada. "I don't see them having to go out and raise equity... I think the banks will use other tools in their toolbox before having to go and raise equity," said Maria Gabriella Khoury, analyst at credit-ratings agency Fitch. "They are doing that.. to make sure banks are holding more capital as we potentially head into a downturn," Colangelo said.

Persons: Banks, Adrienne Young, Maria Gabriella Khoury, Fitch, Robert Colangelo, Colangelo, Anthony Visano, Nivedita Balu, Rod Nickel Organizations: TORONTO, Franklin Templeton, " Bank of Nova, Scotiabank, BMO, Equity, DSB, Royal Bank of Canada, RBC, HSBC Canada, Kingwest, Thomson Locations: Franklin Templeton Canada, " Bank of Nova Scotia, U.S, Toronto

☆ Canada's antitrust agency favors RBC's $10 billion deal for HSBC unit
▼ + stars: | 2023-09-01 | by ( ) www.reuters.com time to read: +2 min

A sign for the Royal Bank of Canada in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo Acquire Licensing RightsSept 1 (Reuters) - Canada's Competition Bureau said on Friday Royal Bank of Canada's (RY.TO) (RBC) proposed acquisition of HSBC's (HSBA.L) domestic unit for C$13.5 billion ($10 billion) is unlikely to substantially hurt competition. Still, the regulator found that the deal would "result in a loss of rivalry between Canada's largest and seventh largest banks." It has been seeking comments on how the deal could impact consumers and the stability of the banking sector. Reporting by Manya Saini in Bengaluru and Nivedita Balu in Toronto; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Persons: Carlos Osorio, OSFI, Manya Saini, Balu, Arun Koyyur Organizations: Royal Bank of Canada, REUTERS, Friday Royal Bank of Canada's, RBC, Finance, HSBC, Reuters, Bank of Montreal, Thomson Locations: Toronto , Ontario, Canada, Bengaluru, Toronto

☆ Canada financial regulator proposes new capital guidelines for crypto assets
▼ + stars: | 2023-07-26 | by ( ) www.reuters.com time to read: +1 min

July 26 (Reuters) - Canada's financial regulator on Wednesday proposed changes to its capital and liquidity approach to crypto-assets, citing a risky environment and in response to international banking standards. The Office of the Superintendent of Financial Institutions (OSFI)said guidelines were for federally regulated deposit-taking institutions, that includes banks and credit unions, and another for insurers, on the regulatory capital treatment of crypto-asset exposures. OSFI's Superintendent Peter Routledge said banks and insurers need clarity on how to treat crypto-asset exposures when it comes to capital and liquidity and the regulator looks to provide clarity through the new guidelines. The two draft guidelines will be open for public consultation until Sept. 20 and is expected to come into effect in early 2025. The new guidelines will replace the interim advisory on the regulatory treatment of crypto-asset exposures, published in August 2022, OSFI said.

Persons: Peter Routledge, OSFI, Nivedita Balu, Marguerita Choy Organizations: Thomson Locations: Toronto

Unlike the U.S., where home buyers can snag a 30-year mortgage, Canadian borrowers must renew their mortgages every five years at the prevailing interest rates. MORTGAGE DELINQUENCIES LOWLatest data released during the quarterly earnings showed mortgage delinquencies for all banks were low. Of the big six banks in Canada, Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) do not offer mortgage extensions, meaning the payment owed by the consumer goes up for each hike the BoC announces. Bank of Montreal (BMO.TO), CIBC (CM.TO) and TD Bank (TD.TO) each allow for negative amortization as rates rise. So it is working counter to what the Bank of Canada is trying to accomplish," Briggs added.

Persons: Greg Taylor, Desjardins, Mike Rizvanovic, Rizvanovic, Darcy Briggs, Briggs, Nivedita Balu, Josie Kao, David Gregorio Our Organizations: TORONTO, Bank, Purpose Investments, Bank of Nova, National Bank of Canada, BoC, RBC, Scotiabank, National Bank, Bank of Montreal, CIBC, TD Bank, Desjardins . Royal Bank of Canada, BMO, Franklin Templeton, Bank of Canada, Thomson Locations: U.S, Canada, Bank of Nova Scotia, Franklin Templeton Canada, Toronto

Variable rate mortgages in Canada typically require borrowers to make regular payments in fixed amounts. WHAT IS THE EXTENT OF MORTGAGE AMORTIZATION EXTENSION? Both banks had no variable-rate mortgages with amortizations greater than 30 years prior to the start of rate hikes. If interest rates stay high over the next few years, as the central bank has warned, it raises questions about customers' ability to service bigger than anticipated debt at higher rates during renewals. The big banks said most customers are able to cope with higher interest rates as they had passed a rigorous stress test to handle higher interest rates.

Persons: Royce Mendes, Carolyn Rogers, OSFI, Nivedita Balu, Fergal Smith, Steve Scherer, Denny Thomas, Conor Humphries Organizations: TORONTO, Statistics Canada, Royal Bank of Canada, CIBC, Bank of Nova, National Bank, Bank of Canada, BoC, Thomson Locations: Canada, United States, Bank of Nova Scotia, amortization, Toronto, Ottawa

☆ Exclusive: Canada bank regulator says lenders should urgently tackle risks from mortgage extensions
▼ + stars: | 2023-06-13 | by ( Nivedita Balu | ) www.reuters.com time to read: +4 min

TORONTO, June 13 (Reuters) - Canada's financial regulator is urging lenders to tackle risks from mortgage extensions at the "earliest opportunity" as many borrowers try to navigate higher mortgage costs after the Bank of Canada's surprise rate hike last week. Canada's central bank has raised interest rates to a 22-year high of 4.75% and analysts are betting on another 25 points increase next month. The regulator had warned in April that though the short-term fix to extend mortgage payment periods helped borrowers, it would keep them in debt for longer. As the interest rate rises, the mortgage payment no longer covers the interest payment portion, which results in the mortgage balance and negative amortization. "We believe risks are still elevated with the prospect of more rate hikes adding to the headwind on mortgage renewals," Rizvanovic said.

Persons: OSFI, Royce Mendes, Mendes, Mike Rizvanovic, Rizvanovic, Nivedita Balu, Denny Thomas, Nick Zieminski Organizations: TORONTO, Bank of, Reuters, Desjardins, Bank of Canada, Bank, Thomson Locations: Toronto

☆ Factbox: Canada budget 2023-24: key measures and proposals
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +2 min

OTTAWA, March 28 (Reuters) - Here are some of the key government measures and proposals outlined in the 2023-24 budget presented by Finance Minister Chrystia Freeland on Tuesday. - Dental Care expansionProposal to introduce legislation to for a new dental care plan which will provide dental care to uninsured Canadians with family income less than C$90,000 annually. - Right to repairGovernment to work toward implementing a right to repair, aimed at making it easier and cheaper to repair home appliance and electronics. - Standard charging portGovernment to explore implementing a standard charging port in Canada for phones, tablets, cameras, laptops and other electronic devices. - Clean Technology Manufacturing Investment Tax CreditProposal for a refundable tax credit equal to 30% of the cost of investments in machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle certain critical minerals essential to clean technology supply chains.

☆ Canadian regulator takes permanent control of SVB's Canadian assets
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 15 (Reuters) - Canada's financial regulator said on Wednesday it had taken permanent control of the assets of Silicon Valley Bank's Canadian branch and was winding up the institution. "I took this action to effect an orderly transition of the Canadian branch of Silicon Valley Bank to the FDIC bridge bank," said Peter Routledge, superintendent of financial institutions. OSFI said an orderly, court-supervised process would allow operations of the Silicon Valley Bank unit to continue. The Canadian business is focused primarily lending to corporate clients and does not hold any commercial or individual deposits. OSFI said on Sunday said it was taking temporary control of Silicon Valley Bank's Canadian unit.

March 12 (Reuters) - A Canadian banking regulator on Sunday said it was taking temporary control of Silicon Valley Bank's (SIVB.O) unit in the country, as the fallout from the collapsed U.S. startup-focused lender reverberated around the world. "By taking temporary control of the Canadian branch of Silicon Valley Bank, we are acting to protect the rights and interests of the branch's creditors," Peter Routledge, the superintendent of financial institutions, said in a statement. OFSI said the U.S.-headquartered bank has operated in Canada since 2019 as a foreign bank branch based in Toronto. Its business in Canada is primarily lending to corporate clients, and the branch does not hold any commercial or individual deposits in Canada. The Canadian unit had C$435 million ($315.33 million) in secured loans at the end of last year, more than double the amount at the end of 2021, according to regulatory filings.

☆ Canadian regulator raises banks' domestic stability buffer to 3%
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +1 min

OTTAWA, Dec 8 (Reuters) - The amount of capital that Canada's biggest lenders must hold as a stability buffer will rise to 3.00% from 2.50% of risk-weighted assets on Feb.1 in response to increased economic uncertainty, the country's financial regulator said on Thursday. The Office of the Superintendent of Financial Institutions (OSFI) said persistent inflation and rising interest rates along with political tensions had exacerbated vulnerabilities. "Systemic vulnerabilities remain elevated – with some, namely Canadian household indebtedness and asset imbalances, edging upwards – as well as the results of recent stress tests," it said in a statement. An OSFI review had shown that the buffer continued to serve to ensure "both systemic stability and the resiliency of D-SIBs (domestic systemically important banks)," OSFI's Chief Risk and Strategy Officer Angie Radiskovic said in the statement. Reporting by Ismail Shakil in OttawaOur Standards: The Thomson Reuters Trust Principles.

TORONTO, Nov 29 (Reuters) - Canadian regulators will review the sale of HSBC's (HSBA.L) business in Canada to Royal Bank of Canada (RY.TO) for C$13.5 billion ($10 billion) in cash, the Canadian government's finance ministry said on Tuesday. The Competition Bureau, under the Competition Act, will also review the transaction," the finance ministry said in a statement. RBC's purchase price reflects a 30% premium to the value some analysts had attributed to HSBC's Canada business. Analysts had valued HSBC's Canada business in the range of C$8 billion to C$10 billion. "The Minister of Finance's decision will be informed by all required regulatory review processes," it added.

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