Canada’s banking regulator is considering lowering capital requirements for loans for certain corporate and real estate properties in a bid to build lending capacity as the country aims to boost business investment and stimulate the economy.

The Office of the Superintendent of Financial Institutions (OSFI) is adjusting the capital requirements for credit risk to provide banks with more flexibility to lend money and invest, the regulator said Thursday.

The proposal is intended to reduce “unnecessary burden without compromising the safety and soundness of financial institutions,” the regulator said as part of its quarterly update.

Among the revisions, OSFI is proposing lowering risk weightings for low-rise residential real estate projects and loans for small and medium-sized businesses.

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