Thank you for inviting me to connect virtually with you today.
The Bank of Canada has had a great working relationship with the Ontario Securities Commission (OSC) for many years. We appreciate your contributions to ensuring a safe, stable financial system that is always there for Canadians.
My remarks today are part of the Bank’s commitment to update Canadians twice a year about key vulnerabilities and risks to the financial system, through our Financial System Review (FSR) each spring and a speech every autumn.
Financial vulnerabilities don’t have to lead to serious problems. Some work themselves out before anything bad happens. But the lesson from history is that—if left unchecked—they can sometimes lead or contribute to harmful outcomes. That can be because they amplify negative shocks, making bad situations worse, or because they become sources of instability on their own.
As you are well aware, the Canadian financial system…