Banking Regulation

Previously published in gettingthedealthrough.com

Regulatory framework

1 What are the principal governmental and regulatory policies that govern the banking sector?

There are several overarching policy objectives that Canada uses as a framework for establishing the rules of the banking sector. From a capital perspective, Canada strongly believes that Canadian banks should meet international best practice for capital and was an early adopter of the Basel II Capital Accord as the basis for establishing the capital requirements for domestic banks. Canada has also announced its intention to fully implement the Basel III requirements on all Canadian banks and advised banks to maintain prudent retention policies and sound capital management practices in order to meet the new requirements in the interim period (and well in advance of 2019).