Thank you, Mr. Chair.
Thank you for your testimony today, Mr. Routledge. It's been very interesting.
One thing that OSFI regulates is basically the capital reserves of the banks, what I think you would call the domestic stability buffer. It's what ordinary Canadians could think of as money set aside for a rainy day. I note that last year, I assume out of concern for the stability of the banks, you increased that requirement from 3% to 3.5%.
Now, the language you use in your recent report for when people refinance or have these variable rate mortgages and their new payments get locked in is “payment shock”. That's very strong language. You don't use that language unless you're really concerned about something. Today it sounds to me like you've poured a little water on that, because you've narrowed it down to just people who are on the variable rate without locked-in payments.
I have a couple of questions. Are you concerned enough to increase the domestic stability buffer again this year, or are you satisfied that people are coping with their payments sufficiently that you could actually reduce it back to 3%?