IMF Says Home Prices to Consumer Debt a Concern for Canada Banks

Feb. 3 (Bloomberg) -- Canada’s banks are able to weather severe financial stresses, though elevated home prices and high household debt are still a worry: IMF.

* “Mortgages and consumer loans secured by real estate

represent the single largest exposure of banks, and elevated

house prices and high household indebtedness remain an area

of concern” * Housing is a worry even with a “substantial level” of

government-guaranteed mortgage insurance * NOTE: Canada’s financial system ranked the world’s soundest

for six straight years by the World Economic Forum * Story Link:NSN N0FEJ56S972Y<GO>

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