The regulator said it will keep the existing mortgage stress tests for borrowers, and will maintain limits that prevent banks from extending too many uninsured mortgages above a certain loan-to-income ratio. The regulator said retaining the loan-to-income limits, which were piloted over the past year, will address a “build‑up of highly leveraged” mortgage borrowers. (The Logic)

Talking point: The decision has been closely watched amid speculation that OSFI might replace the longstanding “stress test.” Instead, borrowers will still need to pass the stress test—proving they can afford their mortgage at a certain interest rate—and banks must also limit mortgages that exceed 4.5 times the borrowers’ income. OSFI has said the policy could have prevented issues tied to the COVID-era “housing boom.” Meanwhile, the federal financial regulator launched a consultation Thursday to increase accountability for C-suite banking executives, saying it wants to rein in “individuals who lack the competence and integrity” in key roles. It cited rising risks, governance cases in Canada and failures at several global banks.