Thank you.
Mr. Chair, the size of residential mortgage credit outstanding is $1.9 trillion currently. About $1.5 trillion is provided by OSFI-supervised institutions. The remaining $400 billion comes from non-banks or credit unions.
If by “shadow bank” you mean what the Bank of Canada classifies as a shadow bank, most of that involves mortgages originated by non-bank players and then sold on into our FRFI space. So the banks ultimately hold the risk, but these are originated by non-banks. That fits the Bank of Canada definition.
Within that there is a small segment that folks might more commonly associate with shadow banking, which includes riskier mortgage investment corporations and the like, and that remains growing but small.