Canada’s large banks have grown more resilient. They remain well positioned to support the economy and the financial system even if conditions deteriorate.
Globally, private credit lending has expanded rapidly and become increasingly connected to the broader financial system. Complex structures, limited transparency and the fact that private credit is untested in a downturn make it difficult to predict how the sector might amplify shocks.
Canada’s financial system has continued to function well despite US tariffs and trade uncertainty. But a more turbulent global environment poses risks to financial stability, particularly if several vulnerabilities crystalize at the same time.
The war in the Middle East has led to periods of increased volatility and reduced liquidity in certain markets, particularly in energy. Nevertheless, markets have generally remained resilient. Equity valuations are still elevated, and credit spreads are compressed.
The Bank of Canada announced today it is joining the Bank for International Settlements’ Project Agorá, an initiative exploring how tokenization could improve wholesale cross-border payments.
On Tuesday, May 26, 2026, Nicolas Vincent, External Deputy Governor of the Bank of Canada, will speak before the Centre interuniversitaire de recherche en analyse des organisations (CIRANO).
External Deputy Governor Nicolas Vincent explores the factors driving recent shifts in Canada’s labour market and the implications for monetary policy.
Speech summaryNicolas VincentCentre interuniversitaire de recherche en analyse des organisations (CIRANO)Ottawa, Ontario
External Deputy Governor Nicolas Vincent discusses three trends signaling weakness in Canada’s labour market, exploring whether they reflect temporary factors or deeper structural change.