Tag Archives: bank regulation

Banks Respond to Appraisal Concerns

In the wake of the Office of the Superintendent of Financial Institution’s (OSFI’s) letter to federally regulated financial institutions, (FRFI’s) the big banks are already responding to the concern on property valuations.  “We have tightened our process, and make sure that we are getting an accurate read,” reported RBC through David McKay, its head of Canadian banking.  TD bank however feels further tightening isn’t necessary.  “We’re really not seeing a … Read More

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Time to Eliminate No-Money-Down Mortgages

Canadian household credit was rising at an alarming rate and has Ottawa looking for ways to stem the tide.  Given greater powers, OSFI is working to strengthen our banks’ balance sheet and limit mortgage lending.  Although their recent discussion paper includes many dramatic recommendations there are some proposals that could achieve its mandate without jeopardizing the housing market.  Their recommendation to eliminate no money down mortgages, for example, is likely … Read More

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OSFI Recommends Age Discrimination for Mortgages

The Office of the Superintendent of Financial Institutions (OSFI) has recently been empowered with the oversight of Canada Mortgage and Housing Corp. (CMHC), and has proposed several new rules to make mortgages safer investments for banks.  It’s controversial to say the least, that Canada’s banks need to get safer or stronger, but nonetheless this is current government paranoia.  The most controversial of which is that a borrowers age should be … Read More

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Canadian Banks Dominate Top 10 List

Bloomberg Markets recently released its second annual ranking of the world’s strongest banks, and Canadian banks took 4 spots from the top 10.  CIBC ranked highest in the 3rd spot, followed closely by TD (at 4), National Bank (at 5), and Royal Bank (at 6).  Scotiabank ranked 18th and Bank of Montreal was 22nd.  Singapore’s OCBC was ranked number 1 and BOC Hong Kong Holding Ltd. was ranked number two.  … Read More

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OFSI Recommends Borrowers Qualify at Renewal

Now that the Office of the Superintendent of Financial Institutions (OSFI) has oversight over Canada Mortgage and Housing Corp (CMHC) it’s looking to leave its mark as a strict regulator of risk.  And holy 4 letter acronyms batman.  The most stringent of the recommendations is the proposal that mortgagors re-qualify for their mortgage every time it renews.  In OSFI’s words “as applicable for each subsequent renewal or refinancing of the … Read More

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Scotiabank Has the Right Idea

While some banks are looking for Ottawa to manage their mortgage business for them, Scotiabank has the right idea and understands that Canadian lenders are obligated to manage their own portfolios.  At Scotiabank’s annual meeting on Tuesday, Rick Waugh, the bank’s chief executive officer said “it’s up to the banks themselves – not government or regulators – to manage our risks and advise our customers appropriately.” Scotiabank stands apart from … Read More

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Bank Watchdog Over-Stepping its Mandate

For the first time, the Office of the Superintendent of Financial Institutions (OSFI) has put together a set of guidelines that would require banks to exercise extensive due diligence when it comes to granting residential mortgages.  Big brother is watching!  When the regulator needs to come in and tell the participants how to run their businesses, you know something is wrong.  What’s even worse is that the banks have been … Read More

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