Financial System Review - December 2015

December 15, 2015
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Available as: PDF

The Reports section of the Financial System Review examines selected issues of relevance to the Canadian and global financial systems. The December 2015 issue features two reports on significant developments in the financial system related to household finances: the importance of residential mortgage securitization for Canadian housing finance and the changing patterns of indebtedness of Canadian households.
Content Type(s): Publications, Financial Stability Report
December 15, 2015

Residential Mortgage Securitization in Canada: A Review

Financial System Review - December 2015 Adi Mordel
Residential mortgage securitization plays an important role in the Canadian system of housing finance, especially given the rising share of government-supported (i.e., public) securitization over the past 15 years. Mordel and Stephens analyze the evolution of two types of mortgage securitization in Canada— private and public — focusing in particular on the underlying public policy and economic benefits of the latter. They review the potential implications of the extent of public securitization and conclude with a discussion of policies that could be considered to reinvigorate private securitization in Canada.
Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial stability, Financial system regulation and policies, Housing JEL Code(s): G, G2, G28
December 15, 2015

Indebted Households and Potential Vulnerabilities for the Canadian Financial System: A Microdata Analysis

Financial System Review - December 2015 Gino Cateau, Tom Roberts, Jie Zhou
Over the past decade, an increasing proportion of households in Canada have become highly indebted relative to their income. These highly indebted households now hold one-fifth of total Canadian household debt.Simulations suggest that this greater degree of household indebtedness could exacerbate the impact of shocks to income and interest rates relative to the pre-crisis period. However, an assessment of the vulnerability of the Canadian financial system should, among other factors, account for the ability of Canadian financial institutions to withstand losses from the household sector.
Content Type(s): Publications, Financial System Review articles Topic(s): Credit and credit aggregates, Financial stability, Housing, Recent economic and financial developments JEL Code(s): D, D1, D14, E, E5, E51

Bank of Canada says housing vulnerabilities have edged higher, but financial system remains resilient

December 15, 2015

Content Type(s): Press, Press releases

Release of the Financial System Review

December 15, 2015
Opening statement -

Press conference following the release of the Financial System Review.

Content Type(s): Press, Speeches and appearances, Opening statements
Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Housing, Regional economic developments, Sectoral balance sheet

Financial System Review - Press Conference (Video) - December 2015

Press conference by Governor Stephen S. Poloz and Senior Deputy Governor Carolyn Wilkins (11:45 (ET) approx.)

Financial System Review - Press Conference (Audio) - December 2015

Press conference by Governor Stephen S. Poloz and Senior Deputy Governor Carolyn Wilkins (11:45 (ET) approx.)