Downside risks are largely external and include setbacks in the ongoing repair of the global financial system and more persistent weakness in foreign private demand. In addition, the possibility of persistent strength in the Canadian dollar would work against the positive factors just mentioned.
What are common among these institutions are unsustainable business models and poor corporate governance practices which has led to the misapplication of depositors funds and pushed them to the threshold of insolvency with liquidity shortages. And, we have all been witnesses to how customers of these institutions have reacted. These developments are not a reflection of the industry.