FILE PHOTO: FILE PHOTO: The Canadian flag is seen on top of a flagpole in the midst of high-rise buildings in the financial district of Toronto, CanadaTORONTO - Canada's banking regulator said on Friday that its revised guidelines that go into effect in 2024 will require lenders to hold more capital for negatively amortizing mortgages as risks from growing loan balances grow due amid interest rates.
"We have updated several of our capital guidelines to promote prudent allocation of capital against risks that lenders and insurers take... We believe these incremental changes add additional resilience to Canada's financial system," Superintendent Peter Routledge said. Among Canada's big six banks, Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada and Toronto Dominion offer fixed-payment variable rate mortgage options. Bank of Nova Scotia and National Bank of Canada's variable-rate offerings have payments that adjust upward with rates.
For banks with a fiscal year end of Oct. 31, the revised CAR guideline is effective November 1, 2023.Canada's Conservative leader urges rejection of RBC's offer for HSBC Canada -media
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