As Canadian consumer debt sets a new international record, we’re defaulting more on car loans and credit cards. The crisis is starting to hit the bottom line of the banks as they sock away billions to cover potential bad loans.
, a sign that homeowners could begin to default on their mortgages.
“Now that things are getting back to normal from a business perspective,” said Braga, “collections are ramping up and interest rates are increasing. You’ve got this perfect storm of all of these individuals with debts that they thought were manageable before, who can no longer manage.” Braga said that insolvencies are up and, amid the affordability crunch, “it’s not shocking that the Canadian financial institutions are taking a step back and making provisions for defaulting loans.”
During conference calls on Wednesday and Thursday, bank executives said they’re seeing a continued “normalization” of credit trends, in many cases noting that we’re not even back to the levels of loan default that were standard in the pre-pandemic days.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Expect Canadian banks to set aside more money for loan losses: Analyst - BNN BloombergCanada's leading banks are taking precaution in the face of a possible recession by setting aside more money for credit losses.
Read more »
ANALYSIS | On foreign interference, Johnston asks Canadians to trust him — and Parliament | CBC NewsAn inquiry had appeared almost inevitable — at least politically. But Johnston's argument is that an inquiry wouldn't be able to do or say much more than he now has.
Read more »
CHARLEBOIS: Canadians are buying less food and that trend won't end soonThe release of retail data by Statistics Canada last week provided valuable insight into the dynamic nature of food retailing in Canada.
Read more »
Posthaste: Housing affordability is changing the path of young Canadians' livesHousing affordability is dictating a lot in young Canadians\u0027 lives from where they live to when they get married and have children. Read on.
Read more »
Many Canadians are leaving this registered savings plan's money on the tableAlmost half the people eligible for the RDSP have never heard of it
Read more »
One in four Canadians plans to buy investment property in next five years: Royal LePage surveyA Royal Lepage survey found that just over a quarter of all Canadians plan to buy an investment property before 2028. Read more here.
Read more »