CA BOC Financial System Review

A stable and efficient financial system is essential for sustaining economic growth and raising standards of living. In the Financial Stability Report, the Bank of Canada assesses the resilience of the Canadian financial system and identifies key risks that could undermine its stability. This year, the Bank renamed its annual assessment of the stability of the Canadian financial system to the Financial Stability Report from the Financial System Review. This reflects a continuing evolution in how the Bank assesses risks to Canadian financial stability. In particular, the Report: takes more of a cross-sectoral perspective when assessing overall financial stability in Canada by accounting for interconnections among sectors in the financial system considers how financial system participants are building resilience against the risks to their sector and to the broader financial system Analysis about the structure and efficiency of the financial s post: BOC REPORT: CANADA'S FINANCIAL SYSTEM APPEARS RESILIENT; OVER THE LAST YEAR FINANCIAL SYSTEM PARTICIPANTS HAVE CONTINUED TO PROACTIVELY ADJUST TO HIGHER RATES. post: BOC REPORT: SIGNS OF FINANCIAL STRESS HAVE RISEN PRIMARILY AMONG HOUSEHOLDS WITHOUT A MORTGAGE.

A stable and efficient financial system is essential for sustaining economic growth and raising standards of living. In the Financial System Review, the Bank of Canada identifies the key sources of concern for the financial system in Canada and explains how they have evolved over the past year. The structure of the Financial System Review is undergoing a series of changes to more clearly communicate the risks to financial stability. For 2023, the Bank is no longer discussing financial system vulnerabilities and risks separately; these are now combined under several key areas of concern. This approach reduces repetition, improves readability and allows for a more concise and direct analysis of the nature and level of risk. In short, it allows the Bank to take a more deliberate look at what could go wrong and what the implications would be for financial stability. Another key change is removing from the publication the discussion of issues related to the efficiency of the financial system. These issues will be covered through regular postings to post at 10:03am: Bank Of Canada’s FSR: Recession Could Mean 'Sizable' Mortgage Losses For Banks -Recent Homebuyers Show Greater Signs Of Financial Stress -Regional Bank Turmoil Had Limited Spillover