Bank of Canada Reports Financial System Resilient but Vulnerabilities Rising on May 28

According to the Bank of Canada, on Thursday (May 28), the country's financial system remains resilient but vulnerabilities are increasing. Senior Deputy Governor Carolyn Rogers stated that while the financial system maintains good capacity to absorb shocks amid turbulent economic and geopolitical conditions, certain parts face growing fragility. Rogers highlighted three key vulnerability factors: elevated stock market valuations, rising corporate debt levels, and expanded hedge fund borrowing for sovereign debt purchases.
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