The liquidity issues seen at Home Capital is not an industry-wide problem and the troubled mortgage lender is not a systemic risk due to its small share of the market.
That was the message from Royal Bank of Canada CEO David McKay who told analysts that any continuance of Home Capital’s funding issues will be refinanced by other lenders.
The Financial Post reports that McKay’s comments were echoed by CIBC chief executive Victor Dodig who said that the housing market and economy are not under threat from Home Capital liquidity issues.
"It is important to note that CIBC does not originate subprime or even near-prime mortgage loans," Dodig said.
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