10:49:31 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Bank of Nova Scotia
Symbol BNS
Shares Issued 1,203,003,246
Close 2016-07-07 C$ 62.89
Market Cap C$ 75,656,874,141
Recent Sedar Documents

Globe says tighter rules for TD, rivals make sense

2016-07-08 08:23 ET - In the News

See In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Friday, July 8, edition that the Office of the Superintendent of Financial Institution has taken the rare step of issuing a public letter to financial institutions that heralds a stricter scrutiny of their lending practices. A Globe editorial says OSFI rightly notes that the combination of exceptionally low interest rates and rapid price increases for real estate has greatly magnified the risks for all concerned. OSFI is especially worried about "borrowers relying on income from sources outside of Canada." That touches on the tricky question of the role of foreign buyers in Canada's housing price explosion. Even though we do not have a perfect picture of what is driving the housing market, The Globe says it is reasonable to look at raising lending standards as well as mortgage standards. OSFI is rightly concerned that the homeowners, and their bankers, are extremely vulnerable if and when economic conditions deteriorate. Finance Minister Bill Morneau has convened a study group of experts who have been asked to examine the mysteries of the current housing market. In the meantime, The Globe says a more watchful, conservative approach to lending is needed.

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