However, if it were to happen, its impact on the economy and financial system would be severe. We also focus on three other key risks:   a sharp increase in global long-term interest rates;    stress emanating from China and other emerging markets; and    serious financial stress from the euro area.
Before I open the floor to you, it is important to note that Canada’s financial system remains robust. It will continue to benefit from enhanced policy measures as the G-20 reform agenda is implemented, both domestically and globally. With that, Carolyn and I are happy to take your questions. 2  BIS central bankers’ speeches