Canadian Housing Market Financial Analysis
Canadian Economy and Financial System
Stable economy with sound financial system
•
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CANADIAN ECONOMY
The 10th largest economy in the world,
with an outward orientation
Economy diversified, with particular
strength in services, primary industries,
manufacturing, construction,
and utility sectors
Proactive government and central
bank that have begun unwinding
exceptionally accommodative
monetary policy
Manageable government deficits
and debt burdens
Strong growth outlook, with firm
commodity prices, resilient consumer
activity, and solid U.S. demand for
Canadian goods and services
Only G7 country with free-trade agreements
with all other G7 members under NAFTA /
USMCA, CETA, and CPTPP.
STRONG FINANCIAL SYSTEM
Effective regulatory framework
o Principles-based regime
o Single regulator for major banks
。 Conservative capital requirements
o Proactive policies and programs
⚫ Risk-management practices
O Prudent lending standards
。 Few sub-prime mortgages
o Relatively little securitization
Primarily originate-to-hold model
Canadian banks well-capitalized
and profitable
Scotiabank®
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