Banks could face credit issues in their retail lending portfolios given high consumer indebtedness
Stress testing highlights challenges for CIBC, Scotiabank
However, the knock-on effects of the energy sector slowdown could have a bigger impact on banks’ loan books
Asian, European banks still dominant
But the risks are offset by funding mix and strong liquidity
The rating outlook for RBC has been revised to negative from stable
Revised requirements will be tied to housing prices and household debt levels
12 big banks expected to adapt their business models regularly in response to regulatory changes and structural economic shifts
Reduced government support and declining asset quality drive negative credit outlook
Canadian, U.K. banks have made the most progress in adopting recommendations of the Enhanced Disclosure Task Force