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Bank of Canada Governor Stephen Poloz speaks during a news conference upon the release of the Monetary Policy Report in Ottawa January 22, 2014. Mr. Poloz scheduled to make rate announcement on Wednesday.
Bank of Canada Governor Stephen Poloz speaks during a news conference upon the release of the Monetary Policy Report in Ottawa January 22, 2014. Mr. Poloz scheduled to make rate announcement on Wednesday.
(Chris Wattie/Reuters)

Smaller, higher-risk lenders worry BoC most

The threats to Canada’s financial system have not turned more severe, but the Bank of Canada does fret about the strength of smaller lenders that make risky loans.

In its latest Financial System Review released Thursday, Canada’s central bank didn’t raise many caution flags about the Big Six banks, but did devote substantial space to smaller financial institutions such as credit unions, trust companies and mortgage investment corporations, citing them as some of the most vulnerable to regional property market shocks.