No less binding are the legal and bureaucratic constraints and lack of appropriate infrastructure and financial literacy which requires to be countered in order to bring the financially excluded segments within the formal financial access network. For example, identifying unbanked segments for making them bankable is a challenging task, be it habitation, land ownership title or adopting a common authorised identification code.
Moreover, securitization in Canada is dominated by government-guaranteed mortgage-backed securities (about 85 per cent pre-crisis). As a consequence, the mortgage-backed security market in Canada continued to function well during the crisis. Other private-label securitization markets were less developed. Similarly, there was little usage of credit default swaps to hedge Canadian corporate risk.