The massive policy response from the Bank of Canada and the federal government successfully prevented the country’s financial system from buckling, though vigilance is still needed, according to a top central banker.
Signs of overwhelming financial strain are few, and the risk of a wave of consumer defaults seems low, Deputy Governor Toni Gravelle said in remarks via video conference to the Autorite des marches financiers. Almost all of the households with expired debt deferrals have resumed repayments, and government measures are helping businesses in many sectors manage cash flows, he said.
“We have long warned that a recession could create broad stress across the financial system,” Gravelle said in a semi-annual update on vulnerabilities in the financial system.
“Yet, despite the devastating economic impact of the pandemic, this risk has not -- as of yet -- materialized.” #SANDI HALPERN # LEASED # SOLD
Source: Brokernews.ca
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