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BRIEF-Fitch Says Canada Boosts Bank Capital Requirements While U.S. Eases

Published 2018-12-20, 01:52 p/m
© Reuters.  BRIEF-Fitch Says Canada Boosts Bank Capital Requirements While U.S. Eases

Dec 20 (Reuters) - Fitch:

* FITCH SAYS CANADA'S BANK REGULATOR BOOSTING CAPITAL REQUIREMENTS SIGNALS INCREASED CONCERN ON RISING RISKS OF HIGH LEVELS OF HOUSEHOLD INDEBTEDNESS RELATIVE TO INCOMES

* FITCH RATINGS SAYS ADDITIONAL CANADA BANK CAPITAL REQUIREMENTS CREDIT POSITIVE, SHOULD ADD TO RESILIENCY DURING EXPECTED ECONOMIC SLOWDOWN IN 2019-2020

* FITCH SAYS AS CANADIAN DSIBS ARE BEING REQUIRED TO HOLD MORE CAPITAL, U.S. BANKS ARE EXPECTED TO SEE A RELAXATION OF CAPITAL EXPECTATIONS

* FITCH SAYS CANADIAN BANKS IN NEAR TO MEDIUM TERM ARE LIKELY TO FACE SLOWING GROWTH, RISING INTEREST RATES AND NORMALIZING CREDIT LOSSES

* FITCH SAYS RISK FROM SLOWING ECONOMIC GROWTH TO BE MITIGATED BY CANADIAN BANKS' WELL-DIVERSIFIED BUSINESS MODELS AND LOAN LOSS RESERVE LEVELS

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