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2026-05-28 22:14:39
[Bank of Canada: Financial System Robust, But Vulnerability Increased] The Bank of Canada said on Thursday that while the Canadian financial system is currently in good shape amid a highly volatile economic and geopolitical environment, its vulnerabilities are increasing. Senior Deputy Governor Carolyn Rogers stated, "Our overall view is that the Canadian financial system remains well-equipped to withstand shocks. However, certain parts of the financial system are showing increased vulnerability." Rogers pointed to overvalued stock markets, rising corporate debt levels, and increased borrowing by hedge funds to purchase sovereign debt as factors contributing to current vulnerabilities. She added that while these risks may be manageable individually, the increasingly volatile economic and geopolitical environment could trigger a chain reaction, potentially leading to serious consequences.
