Mar 26, 2013
By Michael Kramer
The federal financial supervisor has slapped a too-big-to-fail label on Canada’s six largest banks.
The Office of the Superintendent of Financial Institutions says the systematically important designation puts an additional one per cent capital buffer on the Bank of Montreal, Scotiabank, C-I-B-C, National Bank of Canada, Royal Bank of Canada and T-D Bank.
The six banks account for over 90 per cent of total banking assets in Canada and will also be under stricter supervision compared to their smaller counterparts.
Meanwhile — a discounted mortgage rate that drew fire from the federal finance minister will expire at the end of the week.
Bank of Montreal’s limited time offer of a 2.99 per cent fixed five-year mortgage will return to the 3.09 per cent that was posted before March 4th.
Jim Flaherty had criticized the bank for the promotion and had his office call Manulife to convince it to reverse a similar discount.