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Canadian banks could withstand shock from China, deputy governor suggests

Canadian financial institutions have adequate capital liquidity to handle external pressures, Wilkins says

carolyn-wilkins
Deputy Carolyn Wilkins confident Canadian banks would be able to withstand China shock

Canadian GDP growth would drop by 0.1% if Chinese growth were to drop 1%, according to staff at the Bank of Canada. Carolyn Wilkins, senior deputy governor, highlighted their work in a speech on April 5.

Speaking to the Greater Vancouver Board of Trade, Wilkins stressed that despite China accounting for 17% of Canada's trade, the financial sector could weather a range of shocks from the country.

The effects of a shock from China would depend on which sectors of the Chinese economy were growing

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