step one. Introduction
As the a followup toward regulating notice put out into , this technical notice merchandise info concerning the Basel III financing floors. It notice matches to your following the key points:
- Capital flooring commonly the newest as part of the 2017 Basel III reforms – indeed, financial support floors have been included in before Basel financial support buildings;
- Money floor features several motives, including: (i) cutting procyclicality out-of funding conditions; (ii) reducing excessively variability inside exposure-adjusted assets (RWA) across banking companies; and you may (iii) generating race around Canadian banking companies. Continue reading “step 3. History of financial support floors when you look at the Canada”