BoC Financial System Survey: Confidence in financial system was at multi-year highs before US crisis

The Bank of Canada (BoC) Financial System Survey (FSS), conducted between February 21 and March 10, showed that confidence in the resilience of the Canadian financial system was at its highest since the first FSS in 2018.

The BoC clarified that “given this survey period, survey responses did not reflect concerns about turmoil in the banking sectors in the United States and Switzerland.”

Key takeaways from the report: 

“Respondents believe the risk of a shock that could impair the Canadian financial system has decreased since the last survey. Their confidence in the resilience of the Canadian financial system is at its highest since the first FSS in 2018.”

“Cyber incidents remain the top risk that organizations face. Geopolitical risks are the second most important risk.”

“Respondents would meet increases in margin requirements smaller than those anticipated in stress tests primarily by pledging assets and cash on hand. If increases in margin requirements were larger than those produced from stress tests, respondents would rely more on other funding sources to raise cash in addition to pledging assets and cash on hand.”