1308 ET - Lower minimum capital levels required of Canada's biggest banks will, at the margin, structurally weaken credit profiles, says Moody's Ratings. The industry regulator OSFI lowered the domestic stability buffer, reducing the required capital levels at a time when banks have already been managing toward thinner capital buffers through dividend increases and buybacks. Moody's says the move stands to weaken systemwide capitalization, heightening sensitivity to earnings volatility, asset quality deterioration, and market shocks. And while OSFI can raise the buffer if needed, any subsequent increase wold force banks to rebuild capital, constraining lending or distributions. (robb.stewart@wsj.com)

(END) Dow Jones Newswires

June 23, 2026 13:08 ET (17:08 GMT)

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