The Office of the Superintendent of Financial Institutions will give banks a one-year extension before they must increase the amount of reserve capital they have on hand. (The Logic)

Talking point: The delayed increase to the capital floor level is part of a suite of international reforms known as Basel III, which would force banks to alter how they calculate lending risks and are meant to protect the global financial system in the event of a crisis. The reforms have been hotly contested in the U.S., while European regulators decided to delay the implementation of certain Basel III reforms last month. Increasing the capital floor for banks involves a tradeoff. It makes it less likely banks will default in times of crisis, but also inhibits their ability to make loans to businesses and consumers. As my colleague Kevin reported, that worsens Canada’s productivity problem—which has also been described as a crisis.