TORONTO — CIBC says it is implementing a discount for shareholders who sign up for a dividend reinvestment plan.
The announcement comes a day after the federal banking regulator increased the capital reserves banks need to keep on hand by half a percentage point.
The Office of the Superintendent of Financial Institutions said it increased the domestic stability buffer over concerns of heightened systemic risk including high household debt levels.
Discounts on reinvestment plans are a way to increase capital on hand by selling shares rather than paying out dividends as cash.
RBC announced its own discount for reinvestments at the end of November, saying at the time it expects the move to boost its capital by about $2 billion, while TD and BMO also have discount plans in place.
CIBC says the discount on dividend reinvestments, which is called a stock dividend option for U.S. residents, will apply starting with the Jan. 27 dividend payment and continue until further notice.
This report by The Canadian Press was first published Dec.9, 2022.
Companies in this story: (TSX:CM)
The Canadian Press