TORONTO, April 18 (Reuters) - A potential downturn in
Canada's housing market and adjusting to rapid increases in
interest rates are among the biggest risks to Canada's financial
system this fiscal year, the country's financial regulator said
on Tuesday.
The Office of the Superintendent of Financial Institutions
(OSFI) said it was ensuring that federally regulated financial
institutions were alert to changing market conditions in its
first annual risk outlook report for the year ending March 31,
2024.
"OSFI is preparing for the possibility, but not predicting,
that the housing market will experience sustained weakness
through 2023," said Peter Routledge, Superintendent at OSFI.
The regulator also said the adjustment to higher interest
rates "may not be completely smooth" and that it was
intensifying monitoring of market liquidity.
(Reporting by Maiya Keidan and Ismail Shakil)
Messaging: maiya.keidan.thomsonreuters.com@reuters.net))
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