2026-05-28

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Release of the Financial Stability Report

The Bank of Canada issued its Financial Stability Report to assess the resilience of the Canadian financial system amid rising geopolitical and economic uncertainties. While banks have strengthened their capital buffers and households remain generally stable, the report highlights increased vulnerabilities in stock valuations, corporate debt, and non-bank intermediaries like hedge funds. The regulators warn that these risks could amplify shocks and interact to cause broader financial stress if a significant economic or geopolitical event occurs.

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