BRIEF-Fitch Says Trade Risks Would Compound Canadian Banks' Consumer Exposure

Published 2018-09-24, 12:55 p/m
© Reuters.  BRIEF-Fitch Says Trade Risks Would Compound Canadian Banks' Consumer Exposure

Sept 24 (Reuters) - Fitch:

* FITCH SAYS TRADE RISKS WOULD COMPOUND CANADIAN BANKS' CONSUMER EXPOSURE

* FITCH SAYS DOWNSIDE ECONOMIC RISKS FROM TARIFF-RELATED JOB LOSSES COULD TRANSLATE INTO HIGHER LOSSES IN BANK CONSUMER PORTFOLIOS IN CANADA

* FITCH SAYS POTENTIAL TARIFF ON CANADIAN AUTOS, WOULD AFFECT ONTARIO MOST GIVEN LARGE AUTO MANUFACTURING SECTOR

* FITCH SAYS U.S. TARIFFS ON STEEL & ALUMINUM IMPOSED IN JUNE (AND CANADA'S RETALIATORY TARIFFS) HAVE HAD LITTLE DIRECT IMPACT ON OVERALL CANADIAN GDP

* FITCH SAYS ECONOMIC EFFECT OF ADDITIONAL TARIFFS WOULD BE FELT THROUGHOUT ECONOMY, RESULTING IN SOFTENING OF LABOR & HOUSING MARKETS, & REDUCED INVESTOR CONFIDENCE

* FITCH SAYS BELIEVE A SIGNIFICANT TARIFF OR TRADE SHOCK COULD LEAD BANK OF CANADA TO PAUSE RAISING (OR EVEN CUT) RATES TO HELP BORROWERS

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