"When we see a clear path to a durable recovery then that becomes possible and that is certainty not the circumstance in which we find ourselves today,"
"We would need a substantial reduction in the uncertainty...and we would want to be confident that there is not a second, pandemic-induced setback for the economy before we could give serious consideration to lifting the restrictions."
Rudin's remarks come as the globe
At the onset of the pandemic, OSFI banned executive compensation hikes and dividend increases and common share buybacks in an effort to keep banks and insurers stable even as other companies declared bankruptcy, resorted to mass layoffs and contended with lockdowns that left their businesses closed for long periods of time.
While many sectors have continued to struggle, the major banks and insurers posted a profit in their most recent quarters, prompting questions around whether it's time to loosen the rules.
While OSFI debates the future of the restrictions, it is watching what approach other countries are taking, said Rudin, while speaking at the
Regulators in
"The restrictions that we brought in at the onset of the pandemic were much less severe than those of most regulators and supervisors around the world," he said.
Canadian banks have yet to push the regulator to ease up.
"When you lift restrictions the dividend question is different from the buy back question because buy backs get turned on and off pretty easily, but dividend increases don't get reversed pretty easily," he said.
White said he will leave it to regulators to decide when it is appropriate to change the rules, but BMO will be ready to contend with policy shifts whenever they arrive.
When he was asked if the regulations should be eased in December, RBC chief executive
"I wouldn't push the regulator right now, but as things progress, as we start to see more stability and clarity in a normalized world, then it would be appropriate."
This report by
Companies in this story: (TSX:RY, TSX:BMO)
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