Canadian Banks Double Total Auto Loans Since 2008

According to a recent report from BMO Capital Markets, the banking sector in Canada is finally reaching the level of consumer auto loans it saw before the 2008 financial crisis, an area of possible concern going forward.

BMO Capital Markets Tom MacKinnon and colleagues offer support for their case by pointing the recent growth in auto loans in Canada. “Canadian consumer auto loans have been one of the fastest growing asset classes for the Canadian banks post crisis  (Exhibit 1). At the end of calendar year 2014, consumer auto loans accounted for about 3.5% of all lo ans on Canadian banks’ balance sheets, which is up from about 1.7% in 2008 and compared with an...