The Globe and Mail reports in its Thursday, Feb. 7, edition that stricter rules on deposits proposed by the Office of the Superintendent of Financial Institutions could drag down profits at alternative mortgage lenders next year, says an analysis by National Bank Financial. The Globe's James Bradshaw writes that the draft rule changes would require banks to hold more liquid assets as a buffer to help keep them stable in times of stress. The proposals have not been made public and could still change. The Globe says banks are expressing concerns that the changes would disproportionately harm smaller and mid-sized financial institutions, such as Equitable Group and Home Capital Group, hampering competition in banking. The new rules would have the greatest impact on banks and mortgage lenders that attract most of their deposits from third party brokers or through on-line channels -- two types of deposits that OSFI is targeting as more risky, because they are prone to sudden withdrawals. Alternative lenders typically cater to borrowers who struggle to qualify for mortgages at major banks. If implemented, the proposals could cut earnings for 2020 by about 10 per cent at Equitable, and 4 per cent at Home Capital.