Finance committee  We watch a variety of economic indicators, not so much so that we'll understand the present, but so that we can understand what might happen in the future. What we're looking for in the future is not for our own purposes to predict what's likely to happen, but to figure out what

Finance committee  Thank you, Mr. Chair. You praised our use of teamwork, and I'm about to show that again. One thing I would mention to the committee, so they understand OSFI's jurisdiction, is that we regulate all the banks in the country, most of the insurers, but we are by no means the larges

Finance committee  We'll see what my colleague might wish to add to this answer, but my own view is, as long as is necessary. The increase in the covered bond limit has been very helpful in improving the liquidity of banks. An earlier questioner was talking about the use of government guarantees

Finance committee  From the asset side, the principal risk faced by banks is on the credit side. This can incorporate mortgages that don't stay current, credit cards that don't stay current, commercial loans. All of these areas are going to be affected by the very sharp economic downturn we are cur

Finance committee  Well, Mr. Chair, as I said, banks will be starting to report their results. Everybody will be able to see their levels of profitability. There are some enterprises that are profitable in the current situation, and others are not. I think that can be an important social issue. It

Finance committee  Well, Mr. Chair, the best answer to that question will be shown in the future as we see how we navigate through this circumstance. Mr. Gully is a member of the Basel Committee on Banking Supervision, so I'll ask him to comment. However, at a high level, I would say that Canada h

Finance committee  Mr. Chair, as Mr. Gully mentioned, we wanted to make a significant decrease in order to respond to the severe and extraordinary circumstances we're in, and to create appreciable space for banks to access the capital loss-absorbing capacity they had built up in good times and migh

Finance committee  Mr. Chairman, just to reiterate briefly, we're paying close attention to all the support being provided directly or indirectly. It's very important to us as a prudential regulator. That said, I didn't bring a figure with me for the total amount, and I can certainly undertake to p

Finance committee  As the questioner mentioned, when we reduced the domestic stability buffer, we instructed all the financial institutions that we supervise—banks and insurers—to not increase their dividends; to cease share buybacks, including share buybacks that we had previously approved; and to

Finance committee  Well, Mr. Chair....

Finance committee  There would certainly be consequences. I think that we have a variety of tools at our disposal. We would want to understand why we had non-compliance, and we would want to tailor the tool for the particular circumstance of the institution. That said, we keep very close tabs on

Finance committee  Mr. Chair, in this context I can only speak from my own perspective as superintendent, rather than for the government as a whole. When I look at this from the perspective of superintendent, we have created a space for banks to lend, and they're being supported on the liquidity s

Finance committee  I'd be glad to do that, Mr. Chairman, but Mr. Gully would be a better speaker on this topic.

Finance committee  Yes, I heard the question well. We have no power to regulate interchange fees. That is a power Parliament has not given us.

Finance committee  The questioner pointed out a variety of ways that the government is supporting the financial system, both directly and indirectly. Direct support comes principally through the activities of our office, of the Bank of Canada and of CMHC, but the indirect support is very important