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First Canadian Place at right and TD Bank Towers centre and left. File photos of downtown Toronto's financial district and area taken at night on Oct 27 2011.
First Canadian Place at right and TD Bank Towers centre and left. File photos of downtown Toronto's financial district and area taken at night on Oct 27 2011.
(Fred Lum/The Globe and Mail)

What OSFI’s “authorized” leverage ratio could mean for investors

Canada’s banking regulator is moving ahead with new requirements that it will use to assess the adequacy of a bank’s capital, but one analyst says a new facet of this disclosure could make it harder to compare one financial institution with another.

The Office of the Superintendent of Financial Institutions released a draft of its leverage ratio guidelines on Wednesday, and is holding a consultation period until September 12. The changes will bring Canada’s rules in line with the international framework favoured by the Basel Committee on Banking Supervision, which oversees global banking regulation. The final guidelines are expected by the year’s end.