The financial regulator’s superintendent Peter Routledge said Canadian banks will be resilient enough to operate through Trump’s threat to impose a 25 per cent tariff. (The Logic)

Talking point: OSFI held the domestic stability buffer steady at 3.5 per cent this quarter. The buffer—a percentage of assets that major banks need to set aside—is a “rainy-day fund” that banks set aside to withstand financial stress. It has remained at 3.5 per cent for over a year. Routledge cited elevated household indebtedness, mortgage renewals, rising corporate debt levels relative to GDP and geopolitical risk as reasons for maintaining the buffer at current levels. He also expects a wave of mortgage renewals in the second half of 2025 and into 2026, but believes the credit system can absorb the impact.