Another example is that at the height of the global financial crisis, Canadian banks faced elevated funding costs even though large Canadian banks were relatively healthy. This can be seen as an external trigger that interacted with vulnerabilities in our banking system.
Government actions through the Insured Mortgage Purchase Program (IMPP), 12 along with Bank of Canada facilities, allowed Canadian banks to reduce their use of term funding significantly and thereby supported the stability of the Canadian financial system (Meh and Poloz 2018).