The Daily Canuck 22.06.2026

Research evidence excerpt

The Daily Canuck 22.06.2026

Canada | Financials EquityJuneResearch22, 2026

Figure 1 - Excess Capital at Various RegulatoryThe Daily Canuck 22.06.2026

Capital Floors

While headline retail sales numbers showed growth, it was fueled by higher gas $16,000$14,000

prices, with demand remaining tepid. This highlights the balancing act that the $12,000$10,000

Bank of Canada must perform, with higher prices not reflecting the weakness $8,000$6,000

in demand and pessimism of Canadian households. $4,000$2,000

$0

BMO BNS CM NA RY TD

12.5% 12.0%

.

** Join us for our Canadian Bank Walking Tour tomorrow - Source: Company reports, Jefferies

June 23 **

What you need to know:

Last Friday, OSFI reduced the Domestic Stability Buffer to 3.0% (from 3.5%), lowering D-SIB•

CET1 targets to at least 11.0% and marking the first change since June 2023. It also narrowed

the DSB operating range to 0–3% from 0–4%. There will be no immediate impact on the bank's

balance sheets from the reduction in the DSB as the banks currently hold significant excess

capital, and we see no evidence of major projects going unfunded. However, the key is that the

upper range of OSFI's bound also decreased, meaning that the DSB will not increase for 3-5

years. This is about opening up more lending capacity as the government begins to execute

on its infrastructure growth strategy. For more details, see our note "Cross-Sector Implications

of Canadian Bank Capital Relief".

On the macro front, Statistics Canada will release May CPI data today, which will be key to•

evaluate the breadth of the impact caused by elevated oil prices, as well as the most probably

outcome for BoC rate decisions this year.

Headlines

Canadian retail sales rise for fourth month in a row (Financial Post) Last Friday, the Financial Post