Liquidity coverage ratio on banks to be introduced as a minimum standard in 2015
The proposed restrictions could hinder the risk management practices of foreign banks, and hurt the liquidity of certain markets
Proposed rule would bring greater clarity to bank financial statement
Margin pressures are expected to continue in the low interest rate environment
Proposals would apply to “systematically important” firms with consolidated assets of US$50 billion or more
Banks will also face challenges as earnings growth is expected slow
More controls over Canadian financial services firms appear to be pending; this is mostly in light of continued volatility
Existing regulatory regime failed to fully capture all the activities of financial conglomerates during the financial crisis
A lack of clarity on the quality of capital may have contributed to uncertainty during the financial crisis
Rating action reflects challenges faced by the sector as a whole