Canadian Western Bank (TSX:CWB) is not going ahead with a proposed amendments to its by laws, which would have allowed it to increase its outstanding preferred shares, because the impact of the new Basel III capital regime on the move was not adequately explained.

CWB said Wednesday that it has decided not to proceed with the proposed amendment set out in its management proxy circular, which would increase the authorized first preferred shares outstanding at any time to $2 billion. “The decision not to proceed reflects the bank’s view that the intent and benefits of the resolution to shareholders were not clearly explained by CWB,” it said.

In particular, it notes that the fact that any preferred shares issued under the Basel III capital regime must be converted to common shares in the event that the bank fails.

The bank says that it will put forth the amendment, with a better explanation, at a future date.

For now though, the resolution will not be voted on at the bank’s annual and special meeting of common shareholders; and, the concurrent special meeting of first preferred shareholders has been cancelled.