26 June 2014
In Zelmer’s opinion, banks have enough capital today, but they can’t relax, especially knowing that 60% of all their lending are mortgages.
OSFI is trying to soften the risks to the market, but only banks and mortgage insurers (e.g. CMHC) are responsible to make sure they are lending reasonably.
He also added that the U.S. real estate collapse showed exactly how high debt level can hit the overall consumer spending and in the end the whole economy.