For example, for all large banks to reach the Basel III Tier 1 common equity target ratio by January 2019, they need to raise an amount about equal to their aggregate post-tax profits last year. Canadian banks are setting the pace. Since the end of 2007, the major Canadian banks have increased their common equity capital by 70 per cent, or $ billion.
All major Canadian banks are expected to meet the stringent 2019 Basel III requirements by next January, as specified by the Office of the Superintendent of Financial Institutions (OSFI). Reducing leverage In an ideal world, regulators would accurately measure the riskiness of banks’ assets when setting leverage.