Canada’s federal banking regulator is moving to make it easier for banks to loan money to small and medium-sized businesses and for some real estate projects.
The Office of the Superintendent of Financial Institutions says the changes to capital requirements will better reflect risks faced by institutions while freeing capacity for them to extend credit and support growth.
It says the proposed changes would give financial institutions more flexibility and reduce their regulatory burden.
OSFI has launched a 90-day public consultation on the proposed changes which would come into effect Nov.1, 2026 or Jan. 1, 2027 for institutions with a financial year ending Oct. 31 or Dec.31, respectively….