Canada’s banks were ranked the world’s soundest by the World Economic Forum for the eighth year in a row, even as rising housing prices may present a risk.
The country’s banking system, which includes Toronto-Dominion Bank, Royal Bank of Canada and Bank of Nova Scotia among others, ranked No. 1 in the Global Competitiveness Report released by the organization Wednesday in Geneva. Finland’s system ranked second of 140 countries surveyed and Australia’s third. The U.S. came in 39th place, compared with 49th a year earlier, according to the report.
Canadian banks are “considered sound, although exposure to a potentially overvalued housing market could become a risk,” the organization said in its report.