The Bank of Canada has published its Financial System Review (FSR) for 2020.
The FSR focuses exclusively on COVID-19 impact on the Canadian financial system. It details the results of policy actions introduced to assist Canadians and businesses through this extremely challenging period.
To date, the Bank’s policy actions in response to the pandemic include:
i) lowering the policy rate to 0.25 percent;
ii) supporting the flow of credit to households and businesses; and
iii) strengthening the transmission of monetary policy so that lower policy rates can be passed through to borrowers.
The Bank also comments that it continues to analyze and conduct research on key financial system vulnerabilities that are not directly related to COVID‑19. Its focus includes on vulnerabilities highlighted in the 2019 FSR: climate change, fintech, and cyber threats.
Additional details can be found here.
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