Fitch: Canadian Housing Correction Could Hit Banks' RWA Levels
August 13, 2013 at 16:26 PM EDT
Regulatory capital ratios for the largest six Canadian banks have benefited from sustained increases in home prices over the last decade, but any future downturn in the housing market could put pressure on those banks' risk-weighted assets (RWA) and regulatory capital ratios, according to Fitch. The pro-cyclical nature of Basel