(Toronto) CIBC announced on Friday the implementation of a discount for shareholders who subscribe to a dividend reinvestment plan.
This offer comes the day after the announcement by the federal banking regulator of an increase of half a percentage point in the capital reserve that banks must keep.
The Office of the Superintendent of Financial Institutions said it raised the rate of the domestic stability reserve due to concerns about increased systemic risk, including high levels of household debt.
Reinvestment plan discounts are a way for a company to increase its available capital by selling shares rather than paying cash dividends.
Royal Bank announced its own discount for reinvestments at the end of November, explaining at the time that it expected the move to increase its capital by around $2 billion, while TD Bank and the Bank of Montreal have also implemented reduction plans.
CIBC said the 2% discount on shares issued under its dividend reinvestment plan will apply from the January 27 dividend payment and will continue until further notice.