Bank of Canada Financial Stability Report warns about risks from rising debt servicing costs, stretched asset valuations, and increased non-bank leverage (30%).

Bank of Canada deems the Canadian financial system stable, but cautions about risks from rising debt servicing costs and stretched asset valuations. The central bank's Financial Stability Report highlights that non-bank participants have increased leverage by 30%. Governor Tiff Macklem emphasizes that adjusting to higher interest rates and economic shocks is an ongoing process with further risks.

May 09, 2024
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