(November 5 – 10:35 ET) –
Federally regulated deposit
institutions are going to get a
break on their capital requirements
to cope with Y2K uncertainty.
The Offices of the
Superintendent of Financial
Institutions “recognises that
isolated Year 2000 market
conditions could result in a
temporary decline of capital
ratios” of banks and trusts,
OSFI deputy superintendent
Nicholas Le Pan has written in
a letter to deposit-taking
institutions. Le Pan says that
OSFI will consider “limited and
temporary flexibility in capital
requirements”.
Permission to slide offside on
capital requirements will be
considered on a case-by-case
basis, says Le Pan, in view of
the institution’s risk profile
and its contingency plans,
particularly its plans to get
its capital back up to snuff by
February 29, 2000.
Securities regulators have yet
to make the same considerations for
securities firms.
-IE Staff
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