The group, however, cautions that these indicators should not be treated as a formal stress test, but as a first step in a broader analysis. Canada's household debt hit CAD1.8tn ($1.4tn) in Q4 2017, marking a 6% rise, YoY, and putting the nation's banking system at risk. The Bank of Canada has been warning for years that Canadians are living beyond their means as they borrow to fund an ever-increasing share of their family's expenses. Even so, nearly half of Canadians reduced their personal liabilities.
Canada's household debt hit CAD1.8tn ($1.4tn) in Q4 2017, marking a 6% rise, YoY, and putting the nation's banking system at risk. The Bank of Canada has been warning for years that Canadians are living beyond their means as they borrow to fund an ever-increasing share of their family's expenses. Even so, nearly half of Canadians reduced their personal liabilities.