This is a matter not just of operational continuity, but of maintaining confidence in our financial system in stressed situations. The bottom line is that I am confident that we are doing everything we can on this issue. Still, the system may be only as robust as its weakest link, and that keeps me thinking.
High House Prices and Household Debt My second preoccupation is the state of Canada’s housing markets and the associated level of household debt. The Bank said in last month’s Financial System Review that these vulnerabilities are showing early signs of prospective easing, which is good. However, these vulnerabilities are elevated, and are likely to remain so for a long time.