The Bank of Canada release its Financial System Review today, Thursday 7 June 2018, coming up at 1430GMTY
The FSR is a twice yearly publication from the BoC
RBC have a preview of what to watch for:
continued emphasis on household debt and the housing market expected. Both look to have been impacted by the new B-20 stress test guidelines on uninsured mortgages that started on January 1st.
- Regarding household debt, a slowing in credit growth of late (to 3.3% 3m/3m, annualized), including for high debt-to-income ratio borrowers should be noted.
- Not unrelated, unit re-sale activity has fallen sharply in 2018 (-14% y/y nationally, -33% y/y in the GTA for April), with this in part due to accelerated activity ahead of the new guidelines.
- Recent BoC communication has noted that they see some improvement in re-sales as the quarter progresses.
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Household debt and housing market … similar issues to Australia, then?,
