The DSB applies to Canada’s six largest banks and requires them to set aside additional capital that can be drawn upon during times of stress.

OSFI’s decision reflects concern about household debt, commercial real estate valuations and global trade tensions—many of which were also cited in its previous review in December.

Since then, OSFI noted that some vulnerabilities have eased modestly, including a slight decline in household indebtedness, though it remains elevated by historical standards.

“Fortunately, Canada’s systemically important banks have entered this period of uncertainty from a position of strength,” said OSFI Superintendent Peter Routledge.

He pointed to average CET1 capital ratios of 13.6% as of April 30, well above the 11.5% minimum and up nearly 30 basis points since the last review.

In its December 2024 announcement, OSFI said the 3.5% level already reflected a historically high degree of preparedness.

The regulator reiterated then—and again today—that it stands ready to lower the buffer if financial conditions deteriorate. Doing so, OSFI noted, would not signal weakness but rather serve as evidence of a resilient system built to absorb shocks.

The next scheduled DSB announcement will be in December 2025.

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Last modified: June 26, 2025