This will also enhance the effectiveness of banking supervision, because a joint supervisory approach can tackle crossborder effects more effectively than a purely national one. As for transparency, the SSM will operate on the basis of more comprehensive information, and it will benefit from cross-border comparisons and Europe-wide expertise.
Stronger housing activity also means more household debt, of course, which continues to be Canada’s biggest financial system vulnerability. The good news is that with the B-20 guideline working to reduce the riskiest borrowing, we are confident that the stock of household debt is becoming less of a threat over time. Assessing the economy’s capacity The third area is business investment.