Risk of shock to financial system down, but concerns linger: Bank of Canada survey
BNN Bloomberg
Risk management experts believe the likelihood of a shock that could impair the Canadian financial system has decreased since last year, but concern remains around geopolitical tensions, high inflation, unemployment and household debt burdens.
The Bank of Canada's 2023 Financial System Survey shows that confidence in the resilience of the Canadian financial system is at its highest level since the central bank's first such survey in 2018.
Experts cite a well-capitalized banking sector and well-regulated financial system, saying they expect regulators, central banks and governments would intervene in the event of a significant shock.
Respondents who believe the likelihood of a shock is greater in the next one to three years say they are concerned that high inflation could linger and quantitative tightening could lead to deteriorated market liquidity.
