What is the Domestic Stability Buffer?

Explanation of what the Domestic Stability Buffer is and why it’s important.

Video duration: 00:00:40
Date: June 19, 2023



What is the Domestic Stability Buffer?


[Text on screen: What is the Domestic Stability Buffer?]

Narrator: One of OSFI's tools is setting capital levels - the amount of money that financial institutions must set aside for the unexpected so that they can remain strong during difficult times.

An example is OSFI's Domestic Stability Buffer, which requires Canada's big six banks to build up a strong cushion of capital during good times.

During challenging times, OSFI will reduce the buffer it requires banks to hold, which allows them to lend more to households and businesses.

[Visual: OSFI logo]

[Visual: Government of Canada logo]