Canadian Regulator Says It Will Not Renew Special Treatment of Deferred Loans

A home sold in Vancouver. The city’s skyrocketing housing market is another good reason for the federal government to reduce its appetite for mortgage insurance. The Canadian Press/Jonathan Hayward

TORONTO—Canada’s financial regulator said on Friday it has no plans to reinstate the treatment of loans deferred by banks as performing assets, even as the number of COVID-19 cases spike and some provinces shut down businesses again.

The decision to allow the special treatment of deferred loans in March stemmed from the lack of time and information to evaluate each case individually, Superintendent of Financial Institutions Jeremy Rudin said on a media call.