Financial System Review - November 2017

November 28, 2017
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This issue of the Financial System Review reflects the Bank’s judgment that the high level of household indebtedness and housing market imbalances remain the most important vulnerabilities. While these vulnerabilities are still elevated, improving economic conditions and recent changes to housing policy should support an easing of these vulnerabilities over time. A third vulnerability highlighted in the FSR concerns cyber threats and the interconnectedness of the financial system.
Content Type(s): Publications, Financial Stability Report
November 28, 2017

Analysis of Household Vulnerabilities Using Loan-Level Mortgage Data

Financial System Review - November 2017 Olga Bilyk, Alexander Ueberfeldt, Yang Xu
This report examines detailed data on home mortgages to provide a better understanding of the vulnerabilities associated with the mortgage market. The proportion of low-ratio mortgages is growing, particularly in regions with strong house price growth. Moreover, these borrowers exhibit less flexibility to adverse shocks, since they have high debt levels relative to income and have taken mortgages with long amortization periods.
Content Type(s): Publications, Financial System Review articles Topic(s): Credit and credit aggregates, Recent economic and financial developments, Sectoral balance sheet JEL Code(s): D, D1, D12, D14, G, G2, G21, G28
November 28, 2017

Shoring Up the Foundations for a More Resilient Banking System: The Development of Basel III

Financial System Review - November 2017 Sheryl King, Alexandra Lai, Tamara Gomes
The authors trace the development of the Basel III standards for banking regulation. Basel III builds on two earlier frameworks, in response to weaknesses revealed during the global financial crisis. They highlight how implementation of the standards will underpin greater financial stability and provide a sound foundation for economic growth.
Content Type(s): Publications, Financial System Review articles Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): G, G1, G2, G21, G28
Stephen S. Poloz and Carolyn Wilkins - carousel image

Press Conference

Press conference by Governor Stephen S. Poloz and Senior Deputy Governor Carolyn A. Wilkins. (11:30 (ET) approx.).

Press Release

The high level of household indebtedness and housing market imbalances remain the most important vulnerabilities identified by the Bank of Canada in its Financial System Review (FSR), published today. While these vulnerabilities are still elevated, improving economic conditions and recent changes to housing policy should support an easing of these vulnerabilities over time.

Content Type(s): Press, Press releases

Opening Statement

Opening statement -

Press conference following the release of the Financial System Review.

Content Type(s): Press, Speeches and appearances, Opening statements
Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Housing, Regional economic developments, Sectoral balance sheet

The 2-minute FSR

Financial system vulnerabilities: the crack in the tree