{"id":6061,"date":"2018-04-18T13:09:42","date_gmt":"2018-04-18T17:09:42","guid":{"rendered":"http:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/?guid=68efdc2eab5b9da89c1e5fedd3bb4277"},"modified":"2018-04-18T13:09:42","modified_gmt":"2018-04-18T17:09:42","slug":"ottawa-publishes-final-bail-in-banking-rules-to-avoid-taxpayer-bailouts","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2018\/04\/18\/ottawa-publishes-final-bail-in-banking-rules-to-avoid-taxpayer-bailouts\/","title":{"rendered":"Ottawa publishes final bail-in banking rules to avoid taxpayer bailouts"},"content":{"rendered":"<p>Ottawa has laid out its final regulations for banks aimed at avoiding the use of taxpayer dollars to bail out financial institutions in the unlikely event of a failure.<\/p>\n<p>Under the so-called bail-in regime, authorities could convert certain kinds of unsecured, long-term debt of a failing lender into shares to stabilize the financial institution, rather than asking taxpayers to fund a government bailout.<\/p>\n<p>The new regulations, published in the Canada Gazette and which take effect in September, are part of a raft of measures put in place by regulators globally to prevent a recurrence of the government bailouts needed during the 2008 financial crisis.<\/p>\n<p>Unlike in the U.S. and the U.K., Canada&#8217;s banks did not need a bailout, but the regulations shore up the country&#8217;s banking framework and outline a contingency plan for future crises.<\/p>\n<p>David Beattie, senior vice-president at ratings agency Moody&#8217;s, says the regulations are positive for depositors and taxpayers, but affected banks will be required to have more capital on hand.<\/p>\n<p>The federal financial services regulator also released updated guidelines for Canada&#8217;s largest banks concerning capital requirements and the minimum capacity to absorb losses in the event of a failure.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ottawa has laid out its final regulations for banks aimed at avoiding the use of taxpayer dollars to bail out financial institutions in the unlikely event of a failure. Under the so-called bail-in regime, authorities could convert certain kinds of unsecured, long-term debt of a failing lender into shares to stabilize the financial institution, rather [&hellip;]<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/6061"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=6061"}],"version-history":[{"count":2,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/6061\/revisions"}],"predecessor-version":[{"id":6065,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/6061\/revisions\/6065"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=6061"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=6061"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=6061"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}