Canada’s largest banks did not need rescuing from the financial crisis but are still facing high costs to ensure that they will be tough enough to withstand a similar event. While mortgage lenders in the US were hit hard by the crisis Canada’s big six banks were resilient, however they will now need to convert $152 billion of capital into securities according to RBC estimates. It could mean higher costs for those using their services including those with mortgages. RBC believes that switching debt to new kinds of securities will cover most of the requirement but there will be costs which will likely be passed on to customers.
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