The stability of the world's banking system is the prime focus of the global Basel Committee on Banking supervision. Composed of central banks from all around the world, this committee has developed a global regulatory framework to ensure banking systems are resilient to economic downturns and other events that may have a negative impact on financial stability worldwide. A key component of this framework is ensuring financial institutions maintain sufficient capital. The level deemed sufficient depends on the riskiness of an institution's assets. The larger the assets, the riskier they are, and the more capital it must maintain to be compliant. In Canada, the Office of the Superintendent of Financial Institutions (OFS) works to ensure Canadian banks comply with Basel (and other requirements). According to the Capital Adequacy Requirements Guideline issued by OFSI, capital is categorized into tiers. Tier 1 includes share equity (common and preferred) along with other assets (for instance, goodwill and intangible assets). Many classes of share equity fall into Tier 1. Tier 2 includes other items like subordinated debt. The Bank of Montreal (BMO) has many different classes of preferred shares (series 25 tarseries 46). Each series has different redeemable dates and most are convertible. These preferred shares are one of the many ways BMO ensures a strong capital position and meets regulatory capital requirements, while also ensuring the most cost-effective capital structure it can. Click here to access a Power B1 file. How to Access Power BI: You can open the Power Bl file in this problem statement with Power Bl Desktop. If you don't have it already. search for "Power Bl download" in your internet browser, or click here for a free download.

BMO Preferred Shares by Redemption Date 2020 $1,000M BMO Preferred Shares by Series Value and Number of Shares 2020 PPreferred share value - Number of shares