"To what extent is the way we allocate bank capital driving economic decisions and are those decisions helpful to the long-term prosperity and productivity for Canada?” asked OSFI superintendent Peter Routledge. Photo by Adrien Veczan/The Canadian Press/Postmedia fiels

Canada’s banking regulator is proposing to ease capital rules for certain corporate and real estate loans, aiming to fuel more business investment in the country.

The Office of the Superintendent of Financial Institutions on Thursday launched a 90-day public consultation on proposed changes to capital requirements for credit risk . The goal, it said, is to better align rules with actual risks while freeing up bank balance sheets to “extend credit and support growth.”

Key changes include lowering the risk weighting

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