Canada's top regulator still watching for signs of bubble

Canada’s superintendent of financial institutions, Julie Dickson, says the continued strength of home prices in many Canadian cities in the second half of the year is “undeniable,” and that she’s comfortable that banks are well-capitalized against potential mortgage losses.

While Canadian regulators moved to tighten mortgage lending last year, Dickson said a decision was made earlier this year not to institute further restrictions.

“However, we continue to closely monitor real estate lending, including seeking additional information from financial institutions to better understand what they are doing,” Dickson told mortgage professionals in a speech today. “Any future changes to our guidelines would involve public consultations.” Source: bloomberg.com