Hello, welcome to Politics Insider. Let’s look at what happened today.
Canada’s banking regulator has reduced the capital cushion the country’s biggest banks must reserve, freeing up billions of dollars in excess cash to boost lending for businesses and consumers as Ottawa looks to attract private financing to boost defence and infrastructure.
Stefanie Marotta reports that the Office of the Superintendent of Financial Institutions, or OSFI, said today that it lowered its required capital levels to provide banks with greater capacity for lending to help Canada’s economy as trade routes and geopolitical relationships shift.
In December, 2022, OSFI started ratcheting up capital requirements as a buffer against a potential economic downturn and to reinforce the resilience of the financial system.
But in recent years, analysts and other industry watchers have advocated for loosening capital requirements. The country’s biggest banks – which have posted strong earnings and withstood the threat of loan losses and high inflation – were also asking for more flexibility to lend.
The banks are now holding on to $74-billion in excess cash, about a $30-billion increase compared with the previous capital level. The lenders could add a combined total of $673-billion in risk-weighted assets to their balance sheets, according to the regulator.
“The resilience we’re releasing, the cost of that was very low, and the benefits to the economy of making that statement about the strength of our banking system and the availability of capital for deployment of new opportunities is very high,” said Peter Routledge, Canada’s top banking regulator, in an interview.
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Open this photo in gallery:
Office buildings in Toronto’s financial district.Fred Lum/The Globe and Mail
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What else is going on
Ontario Liberal leadership hopeful awaits Billy Bishop airport consultations before weighing in: Navdeep Bains, who was industry minister in the government of former prime minister Justin Trudeau, is widely viewed as the front-runner in the contest to lead the Ontario Liberals, now in third place in the provincial legislature.
Co-chair of MAID committee defends recommendation to shelve procedure for mental health: Liberal MP Marcus Powlowski told The Globe and Mail that the committee’s conclusion that medical assistance in dying should not be extended for mental illness was based partly on concerns about how the procedure is currently delivered to those whose death is not reasonably foreseeable.
Veteran Ontario prosecutor brought in on Alberta procurement probe: Tom Andreopoulos, who has prosecuted bikers and members of the Mafia, and was also involved in the criminal investigation that targeted former Toronto mayor Rob Ford, confirmed in an e-mail that he is acting as a Crown counsel in the case, though he declined to elaborate on his exact role.
Ottawa adding $5.4-billion to $10-a-day national child-care program: Jobs and Families Minister Patty Hajdu said in an interview on Friday that she has heard the provinces’ calls for more federal money as many struggle to reduce fees, add spaces and recruit and retain enough early childhood educators in the face of rising costs and demand.
Staying together for the house: How the real-estate downturn and rising costs are complicating breakups: Thousands of Canadians have delayed finalizing the end of a relationship or even moving out after a relationship fell apart because they didn’t know whether they could afford to live on their own, with many fearing being priced out of the housing market.
Ottawa, B.C. will commit $200-million for new Tumbler Ridge school and health centre: Prime Minister Mark Carney announced the funding at a press conference alongside Premier David Eby in Vancouver, saying construction would begin this summer, starting with the removal of the existing high school, where six people were killed in a Feb. 10 shooting.
Automatic tax-filing program would reach around 3,000 people in first year, report says: The Carney government announced the measure in its 2025 budget to allow the Canada Revenue Agency to file returns on behalf of a small group of low-income individuals with simple tax situations.
On our radar
Prime Ministers Day: No public events today for Mark Carney.
Party Leaders: Conservative Leader Pierre Poilievre held a news conference in Vancouver. In the evening, he held a town hall meeting on property rights. On Saturday, Poilievre was scheduled to hold a town hall on fishing issues in the Vancouver Island community of Duncan. In Sidney, B.C., Green Party Leader Elizabeth May delivered welcoming remarks at the opening ceremony of the annual convention of the BC and Yukon Provincial Council of the Catholic Women’s League of Canada. No schedules provided for other party leaders.
Ministers on the Road:
In Toronto, Foreign Affairs Minister Anita Anand discussed “Pragmatic Diplomacy Abroad: Delivering for Canadians at Home” at the Munk School of Global Affairs & Public Policy with the school’s founding director, Janice Gross Stein.
In Luxembourg, Defence Minister David McGuinty met with counterparts and senior officials on evolving global security challenges, and participated in a news conference with Luxembourg’s Defence Minister Yuriko Backes.
In Tokyo, Industry Minister Mélanie Joly is continuing a trip that has previously taken her to China. On Monday she will meet with Yoshimasa Hayashi, Japan’s Internal Affairs Minister, and Economic Security Minister Kimi Onoda. She will also meet with representatives of Honda and also Goldy Hyder, the president and chief executive officer of the Business Council of Canada, and a delegation from that organization.
Premiers’ meeting: Prince Edward Island Premier Rob Lantz will host the 2026 summer meeting of Canada’s premiers from July 21 to 23 in Charlottetown, according to an announcement today by the Council of the Federation. Lantz is the current chair of the council.
Quote of the Day
“I think there are so many months now that are dedicated to so many causes, it’s kind of getting hard to even keep track of which month is for which cause or for which group.” – Federal Conservative Leader Pierre Poilievre, the Leader of the Official Opposition, at a news conference in Vancouver today.
Question period
Who was Canada’s longest-serving provincial premier?
Scroll to the bottom of this newsletter for the answer.
Perspectives
The cozy world of Hockey Night in Canada and the CBC hasn’t existed for some time
As the HNIC saga illustrates, the CBC has had a long history of confusion over just what its mandate was. If it was to provide the sort of broadly popular programs that would “bring the country together” – programs like, well, Hockey Night in Canada – the private broadcasters could do that. Or if it was to produce the sorts of high-cost, high-quality, highbrow programming that the BBC or PBS specialize in, well, where were they?
— Andrew Coyne, Columnist
CBC needs wholesome change, not just a tweaking of its mandate
The question of whether Canadians should be able to watch NHL games for free on public television has been settled. Faced with scarce resources and rapidly evolving viewership habits, CBC/Radio-Canada must define a small set of priorities and stick to them. That means radically rethinking its raison d’être in the 21st century media universe.
— Konrad Yakabuski, Columnist
There’s a lot not to like about the new anti-hate council
Government bureaucracy is notoriously snail-paced. This is no time for dawdling or endless committee discussions, but for meaningful action. This week’s passing of the anti-hate bill will offer some protection. But hate must be targeted at its root, not just its activation. It’s going to be a massive challenge. Let’s go.
— Marsha Lederman, Columnist
Go deeper
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The answer to today’s question: Former Nova Scotia premier George Henry Murray, a provincial Liberal, who governed the province from 1896 until 1923 – a 27-year run. Alberta’s Ernest Manning is second on the list. He was premier for 25 years from 1943 to 1968.
