-Bank of Montreal and Bank of Nova Scotia, two of the biggest banks in Canada, on Tuesday warned of muted growth at home until the central bank begins lowering sky-high interest rates, a situation that has forced lenders to set aside big rainy day funds.
In Canada, where big banks dominate the market in lending and personal banking, households have borrowed heavily to buy real estate but face challenges in repaying loans amid higher costs of living. Still, CEO Scott Thomson warned that the Canadian economy would underperform the economies in both the United States and Latin America but expects some "growth reacceleration" in response to policy easing and more active residential real estate markets.
At BMO, provisions for credit losses grew nearly three-fold, offsetting gains from higher NII. Scotiabank's reserves surged about 51%. The FDIC has charged banks a fee to replenish its deposit insurance fund, which was drained of $16 billion by the collapse of Silicon Valley Bank and Signature Bank in the United States last year.
Ukraine's President Volodymyr Zelenskiy said on Monday that without new U.S. military aid his country would be unable to defend a Black Sea shipping corridor that has allowed Kyiv to export millions of tons of grain to global markets.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Scotiabank, BMO brace for higher impaired loans as interest rates weigh on consumersTwo of Canada’s largest banks reported first quarter earnings Tuesday, booking higher-than-expected provisions for credit losses
Source: globebusiness - 🏆 31. / 66 Read more »
Bank of Canada Governor says monetary policy cannot solve housing affordability problemBank of Canada Governor Tiff Macklem stated that monetary policy cannot solve Canada’s housing affordability problem or boost the country’s longer-term economic growth prospects. He emphasized that central bankers do not have control over other key economic variables.
Source: globeandmail - 🏆 5. / 92 Read more »
Bank of Canada Governor Warns Monetary Policy Can't Solve Housing Affordability ProblemsBank of Canada governor Tiff Macklem warns that monetary policy cannot solve housing affordability problems. While effective at controlling inflation, monetary policy has limitations and cannot address short-term price fluctuations or structural barriers behind the housing crisis.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Bank of Canada says housing affordability is about boosting supply, not lowering interest ratesBank of Canada Governor Tiff Macklem speaks during a fireside chat Tuesday, February 6, 2024 in Montreal. THE CANADIAN PRESS/Christinne Muschi
Source: CBCNews - 🏆 2. / 99 Read more »
Bank of Canada to discuss balance sheet normalization next month, says CFA SocietyBank of Canada (BoC) Deputy Governor Toni Gravelle will discuss normalization of the central bank's balance sheet in a speech on March 21, the CFA Society of...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »
Bank of Canada's interest rate decision shouldn't depend on housing market, economists argueAs Canada's inflation rate fluctuates, economists suggest that the Bank of Canada should not base its interest rate decision on the housing market. The January consumer price index report is expected to show a decrease in the inflation rate. Lower energy and food prices are believed to be the main factors behind the slowdown.
Source: TerraceStandard - 🏆 24. / 68 Read more »