The Financial Post reports in its Tuesday, Sept. 18, edition that a new international banking report groups Canada with China and the special administrative region of Hong Kong as jurisdictions whose domestic banking systems are at risk from rising debt levels. A Canadian Press dispatch to The Globe reports that the Bank For International Settlements, which is owned by the world's central banks, says there are early warning indicators in credit-to-gross-domestic-product ratios which signal "vulnerabilities" in the three systems. For Canada and Hong Kong, the stresses to the system are linked to property price gaps above critical thresholds, a measure often linked to overheated housing markets. The bank's second quarter report says Canada's credit-to-GDP gap stands at 11 per cent above its long-term trend, while Hong Kong is 35 per cent higher and China is up 22 per cent. The gap in the United States fell by 7.6 per cent.
© 2024 Canjex Publishing Ltd. All rights reserved.