Canadian deputy says shadow banking could push up household debt
Timothy Lane, a Bank of Canada deputy governor, yesterday raised concerns over the role of shadow banking in mortgage lending, and said it could "contribute to the build-up of imbalances in the household sector".
Lane said the securitisation of government-guaranteed mortgages is a "very important element" of shadow banking in Canada, and has more than doubled in the past five years.
Mortgage lending, he explained, is increasingly funded by the issuing debt securities backed by insured mortgages
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