Canada’s financial system remains resilient but faces growing risks, particularly tied to household debt and global uncertainty, the country’s top financial regulator warns.
The April 14 Annual Risk Outlook of the Office of the Superintendent of Financial Institutions (OSFI) warns of mounting risks in housing, increasing reliance on non-bank financial firms, and potential liquidity strains, as economic uncertainty and global tensions continue to pressure the financial system.
“To date, subdued growth and a softer labour market, particularly in regions most impacted by the changing trade dynamics, have characterized our risk environment. While considerable progress is underway to address these challenges, near-term economic threats remain,” the report says, adding that the “Canadian economy continues to contend with the negative impacts of the current geopolitical and trade environments.”…