Senior Deputy Governor Wilkins and I are glad to be with you today to talk about the June issue of the Bank’s Financial System Review (FSR), which we published this morning. Let me start with a quick reminder about the purpose of the FSR. It identifies vulnerabilities in the financial system—pre-existing conditions that can interact with economic shocks—and monitors how they are evolving.
It also looks at the potential impact on the financial system and economy if a shock were to interact with, and be magnified by, these vulnerabilities. Canada’s financial system remains resilient, and this resilience has increased because the Canadian economy has strengthened since our previous FSR in December.