They reduce tail risks to financial stability and enhance the overall resilience of the financial system. Thank you. Enjoy these last few days of summer. 36  10  Other factors also influenced the growth of mortgage credit over this period. In particular, note that in late 2008–09 the Canadian economy was in a recession.
The decline in that period should not be interpreted as a result of the first wave of tightening of the mortgage rules. Similar evidence on the impact of these macroprudential policies is found by I. Krznar and J. Morsink, “With Great Power Comes Great Responsibility: Macroprudential Tools at Work in Canada,” IMF Working Paper WP/14/83, May 2014.