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>> WELL, CANADA'S FINANCIAL REGULATOR WANTS THE COUNTRY'S BIG BANKS TO HAVE MORE OF A FINANCIAL SAFETY NET IN CASE BORROWERS CAN'T PAY BACK THEIR LOANS. THE OFFICE OF THE SUPERINTENDENT OF FINANCIAL INSTITUTIONS ALSO NOTED TODAY THAT ABOUT 12% OF BORROWERS OF UNINSURED MORTGAGES. SO MORTGAGES THAT ARE FULLY ON THE BANK'S BOOKS ARE ONLY COVERING INTEREST PAYMENTS. SO THE BORROWERS ARE NOT PAYING ANYTHING TOWARDS THE PRINCIPAL. SOME ARE EVEN COVERING THE ENTIRE INTEREST PAYMENT. THE EXCESSES JUST BEING TACKED BACK ONTO THE LOAN KNOWN AS NEGATIVE AMORTIZATION. THE REGULATOR WANTS BANKS TO HAVE MORE CAPITAL AVAILABLE IN CASE SOME OF THOSE LOANS GO BAD. JOINING US NOW IS HOW CHANG ASSOCIATE PROFESSOR OF FINANCE AT THE UNIVERSITY OF PROVINCE, UNIVERSITY OF TORONTO'S ROTMAN SCHOOL OF MANAGEMENT AT THANKS SO MUCH FOR MAKING TIME FOR US TODAY. N SO WHAT DO YOU MAKE OSFI'S MOVE HERE? THE BANKING REGULATOR'S MOVE HERE TOO. GET THE BANKS TO HAVE, YOU KNOW, MORE CA

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