02256cas a2200241 a 4500 AALejournalIMF019439 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498321112 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. Monetary and Capital Markets Department. Canada : Financial System Stability Assessment. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (85 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Financial System Stability Assessment paper discusses that Canada has enjoyed favorable macroeconomic outcomes over the past decades, and its vibrant financial system continues to grow robustly. However, macrofinancial vulnerabilities-notably, elevated household debt and housing market imbalances-remain substantial, posing financial stability concerns. Various parts of the financial system are directly exposed to the housing market and/or linked through housing finance. The financial system would be able to manage severe macrofinancial shocks. Major deposit-taking institutions would remain resilient, but mortgage insurers would need additional capital in a severe adverse scenario. Housing finance is broadly resilient, notwithstanding some weaknesses in the small non-prime mortgage lending segment. Although banks' overall capital buffers are adequate, additional required capital for mortgage exposures, along with measures to increase risk-based differentiation in mortgage pricing, would be desirable. This would help ensure adequate through-the cycle buffers, improve mortgage risk-pricing, and limit procyclical effects induced by housing market corrections. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2019/177 Full text available on IMF http://elibrary.imf.org/view/journals/002/2019/177/002.2019.issue-177-en.xml IMF e-Library