Canada: Financial System Stability Assessment-Press Release and Staff Report
IMF Staff Country Reports, August 1, 2025
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- Canada: Financial System Stability Assessment-Press Release and Staff Report
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Bibliographic details
- Published: August 1, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229019439.002
Summary and context
- Focus: Canada’s 2025 Financial System Stability Assessment.
- Conducted amid: slowing economic growth, trade policy uncertainty, and heightened geopolitical risks.
- Financial Sector Assessment Program findings emphasize the need to proactively address emerging challenges despite robust oversight frameworks.
Financial system structure and concentration
- Canada has a large and highly developed financial system.
- The banking system is concentrated with six systemically important banks accounting for 94 percent of total banking assets.
- Nonbank financial institutions (NBFIs) are important and include mutual and pension funds and insurance firms.
Key risks and stressors
- Slowing economic growth.
- Trade policy uncertainty.
- Heightened geopolitical risks.
- Emerging challenges associated with NBFIs that require enhanced monitoring across jurisdictions.
Regulatory, oversight, and crisis management assessment
- Financial sector oversight and crisis management frameworks are robust but could be further strengthened to proactively address emerging challenges.
- Enhancing cooperation and information sharing between federal and provincial authorities is essential to effectively monitor risks across the financial sector, particularly concerning NBFIs.
- Safety net schemes would benefit from further harmonization across jurisdictions.
- The insurance resolution framework should be strengthened.
Nonbank financial institutions (NBFIs)
- NBFIs include mutual funds, pension funds, and insurance firms.
- Monitoring and supervisory coordination for NBFIs need improvement through better federal–provincial cooperation and information sharing.
Cyber resilience and climate risk
- Significant strides have been made to enhance cyber resilience.
- Authorities are encouraged to further build upon efforts to monitor climate risks.
Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT)
- AML/CFT supervision and enforcement should be strengthened.
Publication and metadata
- Publication date: August 1, 2025
- Pages: 80
- Volume: 2025
- Issue: 220
- Series: Country Report No. 2025/220
- DOI: https://doi.org/10.5089/9798229019439.002
- Stock No: 1CANEA2025001
- ISBN: 9798229019439
- ISSN: 1934-7685
Source: Canada: Financial System Stability Assessment-Press Release and Staff Report (IMF Staff Country Reports, 2025).
Content in this bundle
- Executive Summary