Canada's top banking regulator wants to address competitive imbalance between small and large banks. But will it work?
Canada’s banking regulator, OSFI, is seeking to level the playing field between smaller financial institutions and the country’s Big Six banks by easing capital requirements and reducing barriers to entry. Proposed changes could allow smaller banks to hold less capital against certain loans, expand lending to households and businesses and potentially lower mortgage rates, while a new accelerated licensing process could reduce approval times for eligible entrants within 16 months.
