SOURCE: The Bedford Report

The Bedford Report

February 09, 2011 08:46 ET

Canadian Banks' "Strength" Faces Major Test

The Bedford Report Provides Analyst Research on Bank of Montreal & Royal Bank of Canada

NEW YORK, NY--(Marketwire - February 9, 2011) -  Considered the "strongest banks in the world" in a report from the Bank for International Settlements, Canadian banks did not require bailouts during the global financial crisis, and have been flashing their superior financial strength of late. Due to conservative rules that require them to hold more capital than the global standards call for, Canadian banks have a reputation of being far better-capitalized than their southern peers. The Bedford Report examines the outlook for Canada's largest banks and provides research reports on Bank of Montreal (TSX: BMO) and Royal Bank of Canada (TSX: RY). Access to the full company reports can be found at:

Banks worldwide found out they will face yet another hurdle as regulatory officials from 27 countries have came up with a new set of capital standards known as Basel III. According to the Basel Committee on Banking Supervision, Basel III will set a tougher standard for the quality of capital as well as the assessment of risks on a bank's balance sheet.

The new rules will start in 2013 and will require banks to hold more capital on balance sheets and reduce holdings of innovative investments such as hybrid debt-equity securities. Canadian Banks don't expect to have to redeem securities early to comply with Basel III.

The Bedford Report releases regular market updates on the Canadian Banking Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Royal Bank of Canada says it "expects to manage its transition to Basel III capital rules without making use of the regulatory event redemption clause to redeem capital instruments." Bank of Montreal, meanwhile, says it has no intention of invoking a regulatory event to comply with the new rules.

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