Nonetheless-as the recent government-led sale of the First Republic Bank to JP Morgan highlights-vulnerable institutions can still come under severe market stress. Here in Canada the spillover effects have been muted, reflecting the financial stability we are known for internationally.
This stability reflects a combination of strengths, including the structure of our financial system, strong risk management within our financial institutions, and sound regulation and supervision. 3/5  BIS - Central bankers' speeches  But financial stability risks remain, and we continue to see swings in market sentiment.