Basel floor change boosts Canadian bank capital ratios
CET1 ratios improve between five and 120 basis points quarter-on-quarter at 'Big Five'
The five largest Canadian banks saved a combined C$6.2 billion ($4.8 billion) in regulatory capital charges following revisions to a standardised capital floor on credit risk.
Effective as of the second quarter, the new floor methodology devised by the Office of the Superintendent of Financial Institutions (Osfi) no longer requires banks to compare their modelled credit risk-weighted assets
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