The Bank’s ongoing research and analysis of the financial system, including the work I have discussed today, is an important element of our commitment to helping ensure Canada has a resilient, secure financial system that enhances the economic and financial welfare of all Canadians.
They highlight that the business models of some financial institutions rely too much on an environment of low interest rates and low market volatility. Fortunately, authorities in those countries took swift actions to limit the spillover effects of these stresses to the broader financial system.