Bank of Canada Financial System Review, June 2004

The Bank of Canada published its semi-annual Financial System Review on 10 June. Economic forecasts of global growth in 2004 have been revised upwards significantly. In addition, favourable financing conditions and the efforts of firms to restructure their balance sheets have reduced financial vulnerabilities worldwide.

The strengthening performance of the global economy contributed to a substantial rise in corporate profits and share prices in 2003, improving the quality of firms' credit and

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