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

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