Professor Robert Kerton responded to a recent Equifax report which sounded an early warning alarm about rising debt levels and the health of Canadian banks.
"Canadian banks have been very careful to protect themselves by making loans only when the loan is a low ratio of property value. This means Canada’s financial institutions are well covered - so in spite of recent studies - no one should lose sleep about the health of banks. There is modest concern about borrowers but the alarm in the Equifax Report, like most independent financial sector reports, has a greater focus on the health of banks than on the wellbeing of consumers. A significant portion of consumers are not borrowing for ‘frivolities’ but for assets like mortgages. The focus in any alarm should be on selling malpractices so consumers receive value-for-money and the best financial sellers win.” - Professor Robert Kerton