Canada needs tighter lending rules

Canada needs tighter lending rules

Canada needs tighter lending rules The outgoing boss of the Toronto-Dominion Bank says that Canada needs tighter lending rules to stem the high levels of consumer debt encouraged by the low interest rates. Ed Clark says that it’s not something that banks would chose to do on their own; a unilateral approach would only make that bank uncompetitive; it needs to come from the federal government. Of course the government has stepped in, not once but four times since the financial crisis, but Clark believes there is more that could be done. He steps down as CEO in November and will be succeeded by the current COO Bharat Masrani. Read the full story.
19 Comments
  • Mike Maguire 2014-09-17 9:10:39 AM
    This from Ed Clark from TD, the bank that encourages you to take a holiday from your mortgage payments to travel. Maybe it is time that banks hire people that can actually give good financial advice not jut sell them another line of credit or credit card. But I guess if customers actually paid off their debt banks would not make any money.
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  • David Larock 2014-09-17 9:36:08 AM
    Ed is hoping that some empty platitudes on his way out the door will cast a more favourable light on his legacy.

    The record will show that on his watch TD aggressively loosened its credit policies with market-first initiatives like 125% registrations, and that his Bank also quietly implemented anti-consumer mortgage policies like fixed-rate collateral mortgage collateral charges and the cross-collateralization of unsecured TD debts.

    Your actions spoke more loudly than your empty words do now Ed.
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  • Andrew 2014-09-17 9:38:55 AM
    They should begin with the focus on unsecured lending before there are any more changes to the mortgage rules/policies. My experience is that the readily available lines of credits and credit cards make it very easy for the consumer to live far beyond their means. It is time to get serious about this issue. Not nearly as "sexy" as making big announcements about curtailing mortgage debt but in the long run will be far more effective.
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