The board of directors’ and senior management’s commitment and understanding of these principles is critical in the pursuit of corporate sustainability in your institutions. The board can set the appropriate tone that would guide the business activities and work practices of personnel across the organization.
The creditworthiness of the borrower and the quality of the instrument are also important considerations. I’ll focus on three areas that are of particular concern to me. Let me start with the type of debt that is most relevant for Canada—household leverage.