Canadian banking system outlook revised to stable from negative by Moody's

  9/6/2018 |   SHARE
Posted in Canadian Economy and Housing Market by Sam Cuda & Nancy Cuda | Back to Main Blog Page

Big 6 Banks Canada

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.


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