The Globe and Mail reports in its Wednesday, March 25, edition that Laurent Ferreira, chief executive officer of the National Bank of Canada, says the country's banks need certain capital constraints relaxed to encourage lending to small businesses. The Globe's Stefanie Marotta writes that the United States is planning to lower capital requirements for banks, potentially freeing up billions for lending, dividends and share buybacks. The changes have raised questions about whether Canada's stricter capital requirements put the country's banks at a disadvantage and hinder lending, while Ottawa promotes investment to boost the economy. In recent years, Canada's banking regulator, the Office of the Superintendent of Financial Institutions, has increased the domestic stability buffer -- the capital banks must hold to protect against an economic downturn -- leading lenders to retain billions of dollars in excess cash. Mr. Ferreira says Canada should make more targeted reductions to risk weightings for loans to small and medium-sized enterprises. Risk weightings dictate the capital banks must reserve for their loans, impacting lending decisions. Mr. Ferreira says he would like the OSFI to be quicker at making changes.