Canadian banking system outlook revised to stable from negative by Moody's
Moody's revises its outlook for the Canadian banking system to stable from negative, as the ratings company now sees the Canadian government less likely to provide support should Canadian banks hit a rocky patch.
New "bail-in" rules along with other measures and rising interest rates have moderated housing prices and eased pressures on household finances, Moody's says.
"With the implementation of Canada's new resolution regime and introduction of bail-in rules, we lowered our government support assumptions for the rated banks' deposits and senior debt, a change we anticipated in the previous negative outlook on the system," says David Beattie, a Moody's senior vice president.
The change underscores steady underlying credit strength of Canadian banks, Moody's says. The outlook focuses on the nation's seven largest banks, which hold about 93% of system assets.
Thinking of buying or selling a property, or have a question regarding the real estate market? Fill out the form below and I'll get back to you promptly.