International Banking and Canadian Economy Overview
Household Debt: Canada vs. U.S.
Canadian households' balance sheets compare favourably to US
• Canadian headline debt-to-income ratio is now ~ -4% vs. the U.S. peak in 2008
。 Calculated on the same terms, Canada's debt-to-income is currently 165% vs 131% in the U.S.
• Canadian debt-to-asset ratio remains below U.S.
o U.S. households have incentive to pursue higher asset leverage in light of mortgage-interest deductibility
• Ratio of total household debt-to-GDP remains lower in Canada than U.S.
。 Calculated on a comparable basis, the ratio of household credit market debt is 99.5% in Canada vs 100.8% in the U.S.
Household Credit-Market
Debt to Disposable Income
Total Household Liabilities
As % of Total Assets
180
30
household credit liabilities
173.0
as % of disposable income
170
160
165.4
25
150
140
130
20
131.4
20
120
110
Adjusted Canadian*
Official Canadian
15
100
Official US
90
T
T
00 02 04 06 08 10 12
14
16 18
10
* Adjusted for US concepts and definitions.
Sources: Scotiabank Economics, BEA, Federal
Reserve Board, Statistics Canada.
household debt
as % of assets
US
Household Credit-Market
Debt to GDP
130
% of GDP
120
Original
110
100
US with
unincorporated
business debt
Canada
103.0
100.8
99.5
90
18.3
Canada*
80
74.0
Canada
70
Original
US
17.0
60
50
90 92 94 96 98 00 02 04 06 08 10 12 14 16 18
Sources: Scotiabank Economics, Federal
Reserve Board, Statistics Canada.
00 02 04 06 08 10 12 14 16 18
* Adjusted for US concepts and definitions.
Sources: Scotiabank Economics, BEA, Federal
Reserve Board, Statistics Canada.
Scotiabank. 55View entire presentation