They preferred to transact at the yet-to-be-determined BBSW since this minimised tracking error against their performance benchmarks. To address these challenges, two key steps are being taken to support BBSW. First, the BBSW methodology is being strengthened to enable the benchmark to be calculated directly from the wider set of market transactions that occur each day.
For European banks, it is in the 30s, and for some major global banks, it is over 40. While foreign banks are in the process of moving towards Canadian levels, our banks obviously face no such pressures. In addition, the quality of Tier 1 capital of Canadian banks is among the strongest in the world.