Claire Celerier News Today : Breaking News, Live Updates & Top Stories | Vimarsana

Second time in six months OSFI has increased the amount banks are required to set aside to ensure they have enough to cover losses from defaults.

As Canadian consumer debt sets a new international record, we’re defaulting more on car loans and credit cards. The crisis is starting to hit the bottom line of the banks as they sock away billions to cover potential bad loans.

Canada's six largest banks have put aside over $2.4 billion combined to cover potential losses, anticipating more Canadians will be unable to pay off loans and credit card debt as the country heads into an expected recession.

While Canada's largest banks are charging more to lend money due to high interest rates, experts say they are failing to increase savings account rates in a similar way. Aimed at taming inflation, the Bank of Canada began implementing a series of interest rate hikes in March 2022.

Canada’s big banks dominate the mortgage market and aren’t helping homebuyers and housing affordability with lower mortgage rates for the time being.