“The increase in exposure means that, in the event of broader contagion in the U.S., Canadian banks could face more pressure than in the past to rein in domestic lending,” he said.
“If a negative global shock forced lenders to change strategy, it would greatly increase the risk of forced home sales,” said Brown.Article content Capital Economics thinks two-thirds of the drag on economic activity from higher monetary policy is still to come in 2023.
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