CMHC passes stress test for severe scenarios such as cyber attack and earthquake

CMHC passes stress test for severe scenarios such as cyber attack and earthquake
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OTTAWA — Canada Mortgage and Housing Corp. says its mortgage loan insurance and securitization businesses are stable enough to withstand several extreme scenarios.

In its annual stress test, the housing agency says its capital holdings are sufficient to weather against severe financial stress, a sustained low oil price and a global trade war.

It also says it would fare well against a cyber attack on a Canadian financial institution, an earthquake and a major volcanic eruption.

CMHC first began releasing its stress test results publicly in 2015.

The agency provides mortgage loan insurance for home buyers as well as securitization guarantee programs to help financial institutions.

The Canadian Press

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