Canada Cuts Bank Capital Buffer, Unlocking Lending Firepower

OSFI lowered the domestic stability buffer to 3.0% from 3.5% for Canada's Big Six banks on June 19, 2026, effective immediately. The 50 basis point cut releases meaningful capital headroom for mortgages and business loans. The move signals OSFI judges systemic risks have eased sufficiently to warrant deploying bank capital rather than holding it defensively as economic uncertainty persists.