Sources: Bank of Canada and Bank of Canada calculations Last observation: 2022Q4  Looking ahead What comes next? At the end of January, we said that we expect to pause rate hikes while we assess the impacts of the substantial monetary policy tightening already undertaken.
The TBTF problem derives from the typical response of governments confronted by the potential failure of a large bank, which is to intervene to save the bank and some of its noninsured creditors.