But there are good reasons to believe that the system as a whole will be able to weather this period of stress and remain resilient. Since the 2008–09 global financial crisis, countries around the world have put in place a series of reforms-including higher capital and liquidity levels at banks-to shore up financial system resilience and protect against future shocks.
Here at home, these measures also included a borrower-level mortgage stress test to ensure Canadians could continue to afford their homes when interest rates rose. And, importantly, we are not expecting a severe economic downturn with the kind of large job losses typical of past recessions. This is not to minimize the very real hardship that some are feeling.