14  Bank of Canada Financial System Review, June 2010 and December 2009. 15  This analysis was conducted using data from the Canadian Financial Monitor survey by Ipsos Reid Canada. 6  BIS Review 170/2010  Lines of defence Experience suggests that prolonged periods of unusually low rates can cloud assessments of financial risks, induce a search for yield, and delay balance-sheet adjustments.
There are several defences. The first line of defence is built on the decisions of individuals, companies, banks and governments. The Bank’s advice to Canadians has been consistent. We have weathered a severe crisis – one that required extraordinary fiscal and monetary measures. Extraordinary measures are only a means to an end.