Of those, 70% have a fixed-rate mortgage that is not immediately affected by higher interest rates. The other 30%—or 10% of Canadian households—have a variable-rate mortgage. Throughout the pandemic, a growing number of Canadians took out mortgages that were very large relative to their incomes, at variable rates with amortization  periods of more than 25 years.
Given the achievements in the regulatory framework for banks and the changing landscape in the euro area financial system, our attention naturally shifts to the more opaque and less regulated parts of the financial system. Let me next turn to what is needed beyond the banking system.