Meanwhile, non-performing business loans are forecast to rise to 6

The Bank of Canada normally uses its annual Financial System Review to provide an update on key financial system vulnerabilities-high household and corporate debt and frothy housing markets have been common themes in recent years-that might amplify the effects of an economic shock. Well, such a shock has arrived in the form of a global pandemic that has significantly curtailed economic activity and pushed oil prices sharply lower-a double whammy for the Canadian economy. So today’s FSR had more of a short-term focus, looking at how COVID-19 has impacted the financial system and the financial health of households and businesses, and how monetary and fiscal support measures are buffering the shock. Bővebben