Canadian banks have healthy balance sheets and absolute leverage that is significantly lower than many of their international peers. They are less exposed than their U.S. counterparts to the subprime-mortgage market that is at the root of the market turmoil, and are less dependent on securitization for their financing and on capital markets for their revenues.
Throughout this period of market turmoil, the Bank of Canada has remained in close contact with policy-makers both in Canada and abroad, including colleagues in other major central banks. We are closely monitoring global market developments, and will continue to provide liquidity as required to support the stability of the Canadian financial system and the functioning of financial markets.