Canada: Financial Sector Stability Assessment
IMF Staff Country Reports, February 3, 2014
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- Canada: Financial Sector Stability Assessment
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Bibliographic details
- Published: February 3, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781616358006.002
Key findings on financial stability
- Canada’s financial system successfully navigated the global financial crisis.
- Stress tests suggest that major financial institutions would continue to be resilient to credit, liquidity, and contagion risks arising from a severe stress scenario.
- Elevated housing prices and high household debt remain an area of concern.
- Targeted prudential and macroprudential measures are proving to be effective.
- The regulatory and supervisory framework is strong and is complemented by a credible federal system of safety nets.
Areas of concern and vulnerabilities
- Housing market: elevated housing prices.
- Household balance sheets: high household debt.
- Systemic risk channels tested: credit risk, liquidity risk, contagion.
Policy implications and recommendations
- Continue targeted prudential measures to address household and housing vulnerabilities.
- Maintain macroprudential policy tools that have shown effectiveness.
- Preserve and reinforce a strong regulatory and supervisory framework.
- Maintain credible federal safety nets to support financial stability during severe stress.
Source: Canada: Financial Sector Stability Assessment (IMF Staff Country Report)
Content in this bundle
- Canada: Financial Sector Stability Assessment; IMF Country Report 14/29; January 10, 2014