Covered Bonds in Canada – OSFI’s role in supporting the integrity of the framework — Remarks by Superintendent Jeremy Rudin

Covered Bonds in Canada – OSFI’s role in supporting the integrity of the framework — Remarks by Superintendent Jeremy Rudin to the European Covered Bond Council, Vancouver, British Columbia, April 18, 2018

“In order to ensure that the financial stability benefits of covered bonds are not dissipated by excessive issuance, OSFI has applied a cap on issuance of four per cent of a bank's total assets.

We are now taking a hard look at this limit and we are doing so in the context of our expectations on the banks’ overall management of asset encumbrance.

Any revisions that we might make to our approach must encourage banks to maintain enough unencumbered, high-quality assets when times are good to be able to meet both higher collateral requirements, and broader funding needs, if times turn sour.”