January 30, 2017 / 8:52 PM / in a year

BOC says financial system can withstand big rise in unemployment

TORONTO, Jan 30 (Reuters) - The Bank of Canada’s Deputy Governor Sylvain Leduc said Canada’s financial system is strong enough to withstand a large and persistent rise in unemployment, which he said was the biggest risk facing its financial system.

“We’ve conducted model simulations to analyze the effects of such a shock and found that the buffers in the Canadian financial system would be sufficient to absorb its impact. So while there would be stress, the financial system would remain resilient,” he told a parliamentary committee on Monday.

Reporting by Matt Scuffham; editing by Diane Craft

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