Canada: Financial Sector Assessment Program-Technical Note on Systemic Liquidity Assessment

Confidence in the resilience of the Canadian financial system is strong but liquidity risks warrant attention. The financial system is strong thanks to the well-capitalized banking sector and the well-regulated financial system. It has also demonstrated resilience during past episodes of turmoil. However, liquidity risks are present, as key domestic short-term funding markets remain operationally complicated and highly concentrated on relatively few domestic liquidity providers, while the short-term funding needs of the system are growing fast.