Bank of Canada says financial system remains resilient
The Bank of Canada reports that the national financial system has functioned well through a challenging year as banks strengthen their capacity to absorb shocks. Senior officials noted that while household and business conditions are stable, rising corporate debt valuations and geopolitical volatility create risks that require continued vigilance.
The Bank of Canada released its Financial Stability Report on May 28, confirming the national financial system remains resilient despite increased market vulnerabilities. Senior Deputy Governor Carolyn Rogers stated that households and banks have strengthened their shock-absorption capacity, though high asset valuations and rising global debt levels pose risks. A combination of geopolitical and economic shocks could trigger a sharp loss of confidence and disrupt core funding markets.
