By and large, these changes will moderate residential mortgage loan growth, but over time, we are optimistic we will maintain and grow profitable market share.
Compared with the previous quarter, net charge-offs on residential mortgage loans in the portfolio were flat and net charge-offs on the home equity portfolio increased $1 million.
Therefore, banks need only hold enough capital to cover losses on a certain percentage of their total residential mortgage loan book, rather than 100 per cent of the loans.
