The Bankwatch

Tracking the consumer evolution of financial services

New stress tests coming for Canadian banks

Following up on yesterday’s post there are now indications that Bank of Canada and the banking regulator OSFI are working on a new set of bank stress tests.

OSFI, BoC working together on bank stress tests |

Rather than relying on the banks own internal tests OSFI and the central bank have created a "macro" test, Mr. White said, adding that the work has put this country at the forefront of macroprudential testing.

Some analysts argue some of the results of Canadian bank stress tests should be made public in the interests of transparency. But according to Mr. White, such public disclosure puts pressure on regulators to present institutions in the best possible light.

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Written by Colin Henderson

January 11, 2011 at 15:43

Posted in Uncategorized

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