New players, old risks - financial stability in a changing landscape
· Tiff Macklem, Governor of the Bank of Canada (Canada)
Summary written by Dark Majestic in its own words · topics: financial stability, climate, energy and nature, public finances and debt, development and emerging economies
TM · Tiff Macklem Wiki · Bank of Canada WikiNew players, old risks - financial stability in a changing landscapeContextRemarks by the Governor of the Bank of Canada at the Global Risk Institute in Toronto, followed by a fireside chat.
Why it mattersThe Bank of Canada Governor flags hedge funds in government bond markets and private credit as channels for financial stress.
Problems raised- The Iran conflict raises energy and financial market volatility.
- Hedge funds in sovereign debt can amplify stress.
- Stress in private credit could reach the core of the system.
Solutions proposed- Strengthen repo market infrastructure.
- Make sure markets keep working under stress.
- Monitor links between private credit and banks.
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