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Bank of Canada Flags Rising Vulnerabilities Even as Financial System Weathers Tariffs and Global Shocks

WebProNews·Victoria Mossi·3 days ago
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OTTAWA — Canada’s financial system has held steady. Banks report stronger buffers. Households keep payments current in the aggregate. Yet Senior Deputy Governor Carolyn Rogers delivered a measured warning on Thursday. Vulnerabilities have grown. A single new shock, or worse a cluster of them, could set off a cascade. The Bank of Canada released its annual Financial Stability Report amid ongoing U.S. tariffs, escalating geopolitical tensions and uncertainty tied to artificial intelligence. The 2026 edition paints a picture of resilience tested but intact. “Our overall view is that the Canadian financial system remains well positioned to weather shocks,” Rogers said, according to Reuters . “However, vulnerabilities have increased in some parts of the system.” So far the damage from tariffs has stayed contained. “The impacts have been less widespread than we feared,” Rogers added. Last year’s report had flagged the risk of a prolonged trade conflict curbing households’ and businesses’ ability to service debt.…

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