Bank of Canada sees financial system resilience despite global turbulence

Bank of Canada building is pictured in Ottawa on Tuesday, April 28, 2026. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — The Bank of Canada says the financial system has proven resilient after a turbulent year but officials at the central bank warn risks are mounting on the world stage.

The bank released its annual financial stability report today that outlines where it sees the biggest risks to markets, households and the broader financial system.

While the consequences of U.S. tariffs have not been as bad as central bankers first feared a year ago, officials warn that trade uncertainty persists.

More recently, the Bank of Canada has been preoccupied with the war in Iran and the impact on global markets – but officials say the financial system is so far proving stable through that uncertainty, too.

Artificial intelligence is, meanwhile, sparking concern about disruption in certain industries, the prospect of overinvestment and risks of increasingly sophisticated cyberattacks.

The Bank of Canada warns that a significant shock to the economy could trigger multiple vulnerabilities at once, driving a cascading effect that tests Canadian financial resilience.

This report by The Canadian Press was first published May 28, 2026.

Craig Lord, The Canadian Press