Regulatory Alerts2024-02-15
AMF Reminder to Financial Institutions in Québec Regarding Credit Granting in the Commercial Real Estate Market
The Autorité des marchés financiers (AMF) reminds Québec-authorized financial institutions to apply sound commercial practices, governance, and risk management frameworks when granting credit in the commercial real estate market. Institutions must establish detailed underwriting criteria, conduct annual or more frequent borrower and facility rating refreshes, and perform forward-looking stress testing to identify market vulnerabilities and portfolio concentrations. The regulator further expects clear, timely client disclosure regarding rights and obligations, alongside targeted staff training and robust reporting systems to ensure informed decision-making and ongoing service quality.
Share