Banks must demonstrate, under the internal capital adequacy assessment process prescribed by Pillar 2, that they have enough capital to not only meet the minimum capital requirements but also to withstand a range of severe but plausible shocks.
Once these new notes are removed from circulation, they will be recycled into other products right here in Canada. Since the new notes were unveiled last June, Bank of Canada staff across the country have been training the millions of cash handlers and tens of thousands of police officers about how to check the security features of the notes.