The Financial Post reports in its Tuesday edition that credit losses and expense controls will be closely watched when Canada's big banks begin to roll out fourth-quarter earnings on today. The Post's Barbara Shecter writes that probability of negative surprises on credit losses is low, but any downside shocks in the year-end reports are likely to receive outsized reactions from investors. One twist this year is that the Office of the Superintendent of Financial Institutions (OSFI) is set to update its domestic stability buffer requirements in December. National Bank analyst Gabriel Dechaine said there is an expectation that OSFI is likely to raise the CET 1 (common equity Tier 1) ratio by 50 basis points to 12 per cent. "Most banks are taking concrete action to build CET 1 ratios above 12 per cent," Mr. Dechaine said in a note. "If OSFI takes a more dovish stance, the sector could experience a relief rally." Mr. Dechaine said there are some stabilizing trends expected in the fourth quarter financial results, such as net interest margin -- the difference between the amount of money the bank earns in interest on loans and the amount it is paying in interest on deposits. Stability would be a positive development, he wrote.