"Risks to financial system were described as slightly higher owing to weaker growth, but the risk scenarios were unchanged from 2018 and the Bank noted progress addressing two key vulnerabilities (high household debt and imbalances in the housing market)," TD Securities analysts said assessing the Bank of Canada's Financial System Review.
"The financial system was described as resilient overall."
"The BoC did introduce a few new vulnerabilities: fragile corporate debt funding, climate change, and changes in crypto asset markets. Concerns around corporate debt specifically pertained to the reliance on funding in US high yield and leveraged loan markets for some firms, which exposes them to swings in investor sentiment."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.