Bank of Canada Governor Stephen Poloz said Home Capital Group Inc.’s troubles are unique to the mortgage lender and there’s no evidence they’re spreading to other parts of the country’s financial system.
Home Capital’s situation is “idiosyncratic,” Poloz told the Globe & Mail in a weekend interview in Italy. His comments echoed Canadian Finance Minister Bill Morneau’s remarks in the newspaper a day earlier. Morneau said Home Capital’s risk has been contained and that financial checks and balances are working as they should. The mortgage lender said Monday that deposit levels have stabilized.