Auto lending puts Canada banks at risk, says Moody's

Toronto

AUTO loans in Canada have quadrupled since 2007, putting lenders including Toronto-Dominion Bank and Royal Bank of Canada at bigger risk of losses in an economic slump, Moody's Investors Service says.

"Credit losses have been low, but could rise quickly in an adverse scenario of unemployment increases or rapidly rising interest rates," the New York-based ratings company said last week in a report.