Canadian deputy says LTV and DTI limits ‘most effective’ macro-pru tools

Lawrence Schembri

Loan-to-value and debt-to-income limits on bank lending represent the "most effective" macro-prudential policies to date, according to Bank of Canada deputy governor Lawrence Schembri.

Schembri told the Canadian Association for Business Economics that the Bank of Canada's own macro-prudential measures had helped push up average credit scores and improve the quality of the average mortgage borrower.

Meanwhile, they helped rein-in the annual growth of household credit from 14% in 2007–2008  to

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