Moody’s downgrades Canadian banks

Moody’s is lowering its outlook on big Canadian banks to negative because of the federal government’s “bail-in” rule, reports CBC.

Read: TD completes acquisition of NatWest Stockbrokers

The rule was mentioned in the 2013 omnibus budget but the government has yet to release details. Its aim is for bank bondholders to assume the risk of the bank’s failure in the event of the financial crisis.

The negative rating doesn’t affect the individual credit ratings of RBC, BMO, Scotiabank, CIBC, TD, RBC, National bank or Desjardins, reports CBC. The rating change came in Moody’s annual review of the national banking system.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.