Sentences with phrase «to hold more capital»

That is important, as it could mean banks will have to hold more capital against those assets.

The costs associated with holding more capital either end up being passed along to borrowers, or that type of lending becomes less profitable for the bank.

For months, Federal Finance Minister Bill Morneau and the government - owned mortgage insurer, Canada Mortgage & Housing Corp. (CMHC) have been floating the idea of prompting lenders to hold more capital for residential mortgages to protect against defaults.

Dimon's Wednesday comments came in response to a question about a new proposal from the Federal Reserve that would require JPMorgan, the biggest bank in America, to hold more capital in reserve to protect against losses, even compared to its other mega-bank rivals.

He also said that Canada's banks now are holding more capital as a safety buffer than they were 10 years ago.

As a result, insurers could decide to rebalance their portfolios, to better match assets and liabilities, and purchase more bonds at the expense of equity, if they determine that the potential increased investment return on equities does not offset the cost of holding more capital.

However, the banks are more risk - averse and, because of regulation, they have to hold more capital on their balance sheet, which impacts their willingness to lend and the investment solutions they offer treasurers.

Construction lending is certainly impacted as banks hold more capital against these loans, which are not yet stabilized.

When Finance Minister Bill Morneau announced the latest changes to CMHC mortgage insurance last December, he also proposed forcing banks to hold more capital against mortgages in cities where property prices are high relative to borrowers» incomes — like Toronto and Vancouver.

Originally, the Fed wanted to require banks to hold more capital in reserve for most of the residential mortgages they make, which would have made these loans far less attractive to banks than other types of products.

A major component of Basel III, in effect starting next year, is a requirement for financial institutions to hold more capital.

Generally speaking, the banks aren't thrilled about having to hold more capital, since it could impact profitability.

Under proposed CFTC rules, these companies would be required to hold more capital against certain derivatives trades - also known as «swaps» trades - than banks.

Regulators are focused on these kinds of institutions, which now have to hold more capital than smaller, less - interconnected institutions.

First, the Act required banks to hold more capital to cushion against large losses.

That deal has since been held up as a model for project finance at a time when banks must hold more capital to satisfy Basel III and Basel IV requirements.

This is an entirely sensible idea — I recall suggesting it myself — but it could involve requiring banks to hold more capital, which will constrain the availability and the price of credit and directly increase mortgage rates at a time that might be politically inconvenient.

However Mr Diamond is arguing this will prevent banks from lending to small businesses and personal customers as they will have to hold more capital.

The financial regulator, the Financial Conduct Authority (FCA), has said it wants banks to hold more capital and run down or sell bad assets.

Well, if the Fed tries to do something similar to «operation twist» it would require banks to hold more capital against their positions, because the safe interest rate falls, it causes the risky portion of each loan to rise.

With lower ratings, financial instutions will have to hold more capital against them, which lowers their desirability.

We will be requiring banks to hold more capital and liquidity and to structure compensation packages in ways that limit excessive risk - taking.

It could mean the insurance industry would need to hold more capital to protect against increased risk, he said.

The high volatility commercial real estate (HVCRE) rules introduced in 2015 require banks to hold more capital reserves against construction loans.

Without getting into too much detail, these are both new regulatory scenarios that, generally, require banks to hold more capital to buffer from potential risks on CRE loans.

In forecasting a modest cooling for price increases, the board pointed to recent moves by Ottawa to increase down payment requirements for insured mortgages on expensive properties, along with a proposal by the Office of the Superintendent of Financial Institutions to require lenders to hold more capital against some mortgages.

Basel III agreement will require banks to hold more capital.

Among the most worrisome proposed Basel III standards are detailed risk - weighting requirements that would force banks to hold more capital for all but the most conservative loans, making them more costly for consumers as well as harder to get, Trepeta added.

But NAR and the others also made it clear that the risk - weighting just wasn't necessary, in part because the bad exotic loans of the housing boom were now a thing of the past and also because the upcoming qualified mortgage (QM) rule set standards for strong loans without requiring banks to hold more capital.

Regulators can require insurers to hold more capital to guard against losses on riskier assets.