Canada

Confidence in the resilience of the Canadian financial system is strong but liquidity risks warrant attention. The financial system is strong thanks to the well-capitalized banking sector and the well-regulated financial system. It has also demonstrated resilience during past episodes of turmoil. However, liquidity risks are present, as key domestic short-term funding markets remain operationally complicated and highly concentrated on relatively few domestic liquidity providers, while the short-term funding needs of the system are growing fast.