Canadian banks to meet capital requirements by 2012 - 7 yrs ahead of target

K

Kassz007

http://www.bloomberg.com/news/2010-...uirements-by-2012-rbc-analyst-hardy-says.html

“Implementation will be even longer than we anticipated, allowing Canadian banks to easily meet the new minimum capital targets by the time they are implemented,”


"That means the companies will be able to raise dividends, starting with Toronto-Dominion Bank and National Bank of Canada in the fiscal first quarter of 2011..."


"The Basel Committee on Banking Supervision will require lenders to have common equity equal to at least 7 percent of assets, weighted according to their risk, including a 2.5 percent buffer to withstand future stress.


Bank of Montreal, Canada’s fourth-biggest bank, already meets that requirement based on third-quarter data, with a capital ratio of about 8.6 percent, Hardy said. Canadian Imperial Bank of Commerce is at 6.6 percent, while Bank of Nova Scotia is at 5.8 percent and Toronto-Dominion at 5 percent, he said."
 
http://online.wsj.com/article/BT-CO-20100909-710841.html


"Canada's banks topped their global peers as the world's soundest for third straight year, the World Economic Forum said."


"Canada ranked ahead of New Zealand, Australia, Lebanon, Chile and South Africa in bank soundness, the World Economic Forum said in its closely watched annual global competitiveness rankings. Panama was ranked 7th, while the U.S., which had to bail out major banks and Wall Street firms to avert a financial-system collapse, ranked 111th in terms of bank soundness, just ahead of Germany and Iran."


"Regulation alone is not necessarily the answer to the problem. Many of the institutions that failed around the world were regulated. The key is effective supervision," he said in a statement. "Today's ranking by the World Economic Forum is further evidence that Canada's model does work and is an example to the world."
 
Good for Canada.

Now if the idiots in DC and on Wallstreet would wake up. Maybe, just Maybe there will be hope.

Socialist who pretend to be capitalist tend to fuck things up.
 
I just hope my friends to the south don't get hit too hard with the proposed bank tax. Clearly this tax will be passed on to regular folk ---- another means for government to get their grubby hands on your hard-earned cash.
 
Quote from toc:

sum it in two words.................fiscal discipline. :D
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The big six banks are all at or near their 52 week highs. The prevailing wisdom is now that they know what Basel will do to their capital, the banks will be raising their dividends starting in 2011. The question is if dividend hikes are priced in or not.
 
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