Bank of Canada reins in risk concerns


The overall level of risk to the Canadian financial system has decreased, according to the Bank of Canada's latest review, on the back of improved sovereign funding conditions in Europe and a "constructive evolution" of imbalances in Canada's housing market.

Nonetheless the "weak macroeconomic situation" in the eurozone remains the largest threat to Canadian financial stability, as it "could make it more challenging [for member states] to implement the necessary fiscal and structural reforms".


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