Credit rating agency Fitch has warned that Canada’s banks are at risk due to “unsustainable” levels of consumer debt.
Credit rating agency Fitch has warned that Canada’s banks are at risk due to “unsustainable” levels of consumer debt. Although the firm says that the banks have good earnings and balance sheets it’s outlook for next year comes with caution due to the expected rise in interest rates and the effect that will have on consumers’ ability to service debts although banks will be largely protected from defaults on home loans due to CMHC cover. Fitch says that there is overvaluation in the major housing markets in particular and this sentiment was shared in a report by Moody’s too.
