Canada’s financial regulator lowers capital requirements for the country’s largest banks for the first time in three years, according to reports from Bloomberg and the Financial Post. The change is intended to give banks more flexibility to extend credit, supporting increased lending. The outlets describe the policy as part of a broader domestic economic and investment agenda, including spending and investment tied to defense, critical infrastructure, and artificial intelligence. Both sources say the regulator’s adjustment reduces the capital level banks must hold, which can free resources that banks can use to finance additional loans. The reports do not indicate that the regulator removes prudential oversight entirely; instead, they characterize the move as a recalibration of requirements that affects how much capital is required. The Financial Post and Bloomberg frame the decision as risk-allowing policy designed to encourage greater credit availability while aligning with national priorities.