Sydney (Australia), Nov 20 (EFE). - The banks of Canada, Sweden and Australia are threatened by the possible fall of the prices of the house before the real estate bubble in their respective countries, Moody's said today.
In a report entitled "Global banking: the possible fall in the price of housing harbors some risks for Canadian banks, Swedish and Australian ", the ratings agency warns that the value of households in these countries have risen for more than 16 consecutive years.
Between 2000 and 2016, prices real estate rose 144% in Sweden, 115% in Canada and 113% in Australia, while mortgages account for 63% of bank loans in Australia, 48% in Sweden and 39% in Canada.
Moody's predicted that housing will continue to rise in the next 12 and 18 months in Canada and Australia, while preliminary data suggest that in the case of Sweden may have begun to fall.
The agency notes that, in case of a fall in house prices, the protection measures of contracts Mortgages and banks would limit possible losses.
"However, banks in these countries are exposed to second-order effects," the vice president said in a statement. Moody's, Louise Lundberg, referring to the economic slowdown that would accompany the fall in prices and that would affect possible defaults on common loans.
According to the agency, banks have tools to absorb the impact of the real estate bubble due to the "strong and adequate" level of their capitalization level, although the losses Loans would rise more than one percentage point to 22% in Canada, 1.8% in Australia and 1.4% in Sweden.