The head of the OSFI is warning about the dangers of a Canadian housing market correction.
Speaking on Monday Julie Dickson said that the OSFI would be preparing new guidelines for the mortgage industry.
“Consumers must be considered here because, while banks may be able to withstand shocks, consumers may not,” said Julie Dickson, the head of the Office of the Superintendent of Financial Institutions. “Banks have to set aside reserves for unexpected losses and are typically far better situated to deal with shocks than consumers — who may be highly indebted and therefore particularly vulnerable to significant increases in interest rates or unemployment.”
For more details read the full article over at the Financial Post.
