Canadian banks pass S&P stress tests
by Maximillian on 31/07/09 at 1:29 pm
Canadian lenders have enough capital to withstand losses without needing to raise more cash, Standard & Poor’s said.
“Like all banks elsewhere in the world, Canadian financial institutions are likely to experience additional losses as the recession continues,” the New York-based rating company said Thursday in a statement. “On the positive side, stress tests reveal that these banks have sufficient capital to withstand losses in what we believe is the likeliest case.”
Lenders including Royal Bank of Canada, Toronto-Dominion Bank and Bank of Nova Scotia exceed the minimum capital thresholds that S&P identified as necessary to cover losses, the company said. The tests also included credit unions in British Columbia and Quebec, and HSBC Canada.
Recent Comments