The Globe and Mail reports in its Wednesday edition the banking watchdog fears low interest rates are forcing banks to take undue risks to maintain profits. The Globe's Tim Kiladze writes Julie Dickson, head of the Office of the Superintendent of Financial Institutions, is stepping down next year. Until then, she is closely watching banks' net interest margins. With interest rates so low, margins are slim for such products as mortgages and Ms. Dickson is worried this could convince the banks to loosen their lending standards. Ms. Dickson is also worried about interest rate risk -- something every bank is exposed to. At some point, the Bank of Canada will raise its benchmark rate, and she worries the fallout will be "very painful," particularly for banks that have lent to overstretched consumers. Such concerns have long been on the banks' radars. Declining margins were the hot topic during the second-quarter earnings season two years ago, and Tim Hockey, head of retail at TD Bank, said slimmer profits were resulting "in fighting over the growth opportunities in Canada." This competition is what worries Ms. Dixon. "No one can predict when, or how fast, rates will start to climb," Ms. Dickson said.