DBRS Publishes Commentary on Proposed Implementation of Bail-in Regime in Canada, No Trend Changes

DBRS Limited (DBRS) has today published a commentary titled “DBRS Comments on Proposed Implementation of Bail-in Regime in Canada; Bank Negative Trends Unchanged.”

DBRS comments on recent proposals that advance the implementation of Canada’s Bank Recapitalization Regime. This Bail-in Regime is expected to come into force in 1H18 for the six large Canadian banks that are designated as D-SIBs. DBRS considers that there would not be sufficient bail-inable debt initially to reduce the likelihood of systemic support from its current level in Canada. DBRS expects to maintain the current one notch of support until the D-SIBs build up sufficient new bail-inable senior debt such that the likelihood of systemic support has declined to a level at which this uplift is no longer warranted.

This commentary is available at http://dbrs.com/research/313045/.