Financial System Review
Published twice a year, the Bank’s Financial System Review (FSR) provides a detailed review of developments in the financial system and an analysis of policy directions in the financial sector.
The June FSR will be released on 9 June 2017, but you can read an article about Project Jasper now.
Press conference by Governor Stephen S. Poloz and Senior Deputy Governor Carolyn Wilkins. (11:15 (ET) approx.).
The overall level of risk to Canada’s financial system remains largely unchanged from six months ago, the Bank of Canada said today in the Financial System Review (FSR).
A key vulnerability in the December 2016 Financial System Review is that of elevated levels of Canadian household indebtedness. The proportion of highly indebted households has continued to rise in most Canadian cities, particularly in Toronto and Vancouver.
This is illustrated by the geographical distribution of the average loan-to-income (LTI) ratio among newly–originated high-ratio mortgages. These maps show how average LTIs have evolved over the last three years in the Toronto, Vancouver and Calgary areas. Darker colours indicate more debt relative to income.
The data includes all newly-originated high-ratio residential mortgages— where the amount of the loan exceeds 80 per cent of the value of the home. Regions where less than 10 high-ratio mortgages were issued during the year are listed as “no data available”. In some cases, this is because most home sales in an area have a value exceeding $1 million and are not eligible for high-ratio mortgages.
Department of Finance Canada; Postal CodeOM Conversion File (PCCF), 2016. Statistics Canada Catalogue no. 92-154-X; Forward Sortation Area Boundary File, 2011 Census. Statistics Canada Catalogue no. 92-179-X; Google; Bank of Canada calculations.