Digital Banking Strength and Strategic Funding
Growth in Household Credit
Total household credit has been slowing, grew at 3.1% in annual nominal terms in Q2/20 vs the 2008
peak of 12.2% annually
• Consumer loans excluding mortgages (i.e., cards, HELOCS, unsecured lines, auto loans, etc.)
fell by 3.0% annually in Q2/20 vs growth of >5% in late 2017
Mortgage credit grew at 5.6% annually in Q2/20 vs 2008 peak of 13%. Lower five-year rates are driving a
rebound in the pace of growth, as is strength of underlying demand
HOUSEHOLD CREDIT GROWTH
CONSUMER LOAN GROWTH
RESIDENTIAL MORTGAGE GROWTH
25
[%, 3-month moving average
20
15
y/y %
change
10
5
m/m%
0
-5
change,
SA
00 02 04 06 08 10 12 14 16 18 20
Sources: Scotiabank Economics, Bank of Canada.
22
25
%, 3-month moving average
25
%, 3-month moving average
20
15
20
y/y%
change
10
15
y/y %
change
5
m/m%
change,
SA
5
0
10
-5
-10
m/m%
change, SA
-15
-20
-25
-5
00 02 04 06 08 10 12 14 16 18 20
Sources: Scotiabank Economics, Bank of Canada.
00 02 04 06 08 10 12 14 16 18 20
Sources: Scotiabank Economics, Bank of Canada.
19
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