Biggest risk to CMHC’s mortgage insurance business is a slow-building economic crisis: report warns

A slow-moving economic crisis is the biggest financial risk to Canada Mortgage and Housing Corp.’s mortgage insurance business, according to documents obtained by the Financial Post via an access-to-information request.

The regulator’s supervisory target for a mortgage insurer’s available capital is 150 per cent of its minimum capital required; CMHC’s ratio as of Sept. 30 was 197 per cent.The heavily redacted report outlines the annual dynamic capital adequacy testing of CMHC’s mortgage insurance business.

“Our corporate-wide stress testing and the DCAT results both show we are well capitalized to handle very severe situations,” the spokesperson said. “CMHC develops internal action plans for extreme scenarios, including a slowly developing economic scenario.” “In each case, our testing confirms that our capital holdings are sufficient to weather each of these extreme scenarios,” a press release at the time said.

España Últimas Noticias, España Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Asia stocks decline amid warnings China virus still a threatGlobal stock markets slid Monday after China reported an uptick in new virus cases and analysts warned optimism the disease is under control might be premature.
Fuente: CTVNews - 🏆 1. / 99 Leer más »