Banks have “ample capacity” to help fund Canada’s adjustment to new era: regulator

Hey there, time traveller!
This article was published 17/09/2025 (193 days ago), so information in it may no longer be current.

TORONTO – The head of Canada’s banking regulator says major banks have significant capital on hand and he’s looking to work with them on putting it to use in the interests of the country.

Peter Routledge, who leads the Office of the Superintendent of Financial Institutions, says banks could make nearly a trillion dollars in additional loans and other forms of credit and still remain above capital requirements — a material amount relative to Canada’s $3-trillion economy.  

Speaking at the Global Risk Institute summit in Toronto, he said banks have “ample capacity” to help fund the country’s adjustment to this new era.

Routledge says he’s seeking input from banks on how the capital can be put to work, similar to how the regulator has already adjusted capital rules to make it easier for the insurance industry to invest in domestic infrastructure.

He says he’s already heard constructive feedback from regulated financial institutions on how to make investments easier, but this will also be part of a long-term dialogue.

Routledge says the regulator is looking into ways to get more money flowing, and Canada’s financial system is as resilient as it has ever been, despite trade and geopolitical uncertainty. 

He noted banks have reported two quarters of solid earnings even with those challenges.

“Resilience is not a guarantee. It is an asset, and one that is finite at that,” he said. “But I do believe Canada’s financial system is in a strong position to help the economy adapt to our new economic environment.”

This report by The Canadian Press was first published Sept. 17, 2025.