According to results of the third annual systemic risk survey (The Survey) recently published by Canadian Securities Administrators (CSA), Canadian investment dealers and portfolio managers are less concerned about Canadian financial stability than last year.
The Survey was completed by 536 Canadian portfolio managers and investment dealers between October 10 and November 4, 2024. The results of the Survey provide the CSA with important information on market participants’ views about the stability of the Canadian financial system.
According to The Survey, in 2024 market participants seemed less concerned about interest rate levels. A likely key factor to this change was the recent and expected reductions in interest rates. Their main concerns at the time of the survey were household debt, cyber vulnerabilities, the geopolitical environment, and the housing market.
Key takeaways include:
- Respondents are generally less concerned about financial stability risks than last year. Less than 60% of respondents reported they were Somewhat Concerned to Very Concerned about the stability of the Canadian financial system, a decrease of six percentage-points from a year ago;
- Respondents were most concerned about household debt, cyber vulnerabilities, the geopolitical environment, and the housing market;
- Concern over interest rates dropped sharply from 68% of respondents last year to 27% this year; and,
- In a new category, 48% of respondents thought that Artificial Intelligence posed a moderate level of risk to the financial system.
The 2024 CSA Systemic Risk Survey Summary is available for download from the websites of the Canadian Securities Administrators.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
