This follows a long lacklustre stretch in the wake of both the global financial crisis and the period of high oil prices and exceptional Canadian dollar strength from 2010 to 2013. Importantly, this process of rapid growth generates higher incomes that people spend in every sector of the economy, benefiting everyone.
We can find such elements of pro-cyclicality in the set of new rules for capital adequacy for banks as well as for insurance companies which are more risk-sensitive, in the accounting rules and in the attitude of the supervisory authorities inclined to tighten prudential standards more in times of difficulty than during the preceding boom phases.