Review reflects concerns about high consumer debt levels and elevated housing prices
Organization to publish a number of reports in the coming weeks
It will be up to OSFI to determine which banks may be considered systemically important in Canada
Outlook for the industry is stable, rating agency says
The U.S. Federal Reserve is to begin conducting supervisory stress tests this fall for 19 large bank holding companies
Amar Bidhé, Thomas Schmidheiny Professor at the Fletcher School/Tufts University, says that regulatory changes enacted following the 2008 financial crisis haven’t addressed defects in the financial system. He says banking regulators should replace abstruse rules with a system of “case by case” regulation. He spoke at the IIAC Conference at the MaRS Discovery District in Toronto.
Lack of progress points to weaknesses in business models and underlying profitability
Bankers need to have the same high professional standards as doctors and solicitors
Beyond a certain point, large capital accumulations may hinder economic growth
Revisions intended to close gaps, eliminate “blind spots”