OSFI is calling on banks to come to the regulator with ideas on how these changes will be accomplished without adding too much risk to the system. Photo by Peter J. Thompson/National Post/Postmedia files

Financial institutions could free up more capital for investing and lending if new rules proposed by Canada’s top banking regulator are put in place.

The proposed changes announced on Thursday by the Office of the Superintendent of Financial Institutions (OSFI) in its quarterly release could help Canada adjust to a “rapidly changing environment” and contribute to economic growth , it said.

“Changes are being made so that the capital better reflects the risks,” Jacqueline Friedland, executive director of OSFI, said at a press conference on Thursday. “There are very targeted chan

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