HomeLoansCanada banks likely to shore up reserves as consumer credit risks grow

Canada banks likely to shore up reserves as consumer credit risks grow

Pressure is building on consumers amid rising interest rates and the loss of pandemic loan supports

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Canada’s big banks may need to start shoring up their loan-loss provisions as the economic cycle turns and they eye growing consumer credit risks, according to a new report from Toronto-based Veritas Investment Research.

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“Given cycle highs in household leverage and the fastest pace of interest rate increases in over twenty years, we expect provisions for credit losses (PCLs) in the upcoming cycle to…

Read more at financialpost.com

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