It’s important to remember that while rate reductions have increased vulnerabilities at the margin, they’ve also mitigated the risk to the  BIS central bankers’ speeches  1  financial system by helping offset the decline in incomes and employment tied to the drop in commodity prices.
Our analysis shows that there has been an increase in the number of highly indebted households in Canada, by which I mean those whose debts are more than 350 per cent of their annual gross income. Not only are there more of these highly indebted households, they also carry a growing share of household debt.