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Economic uncertainty must not become financial market instability: Macklem
Bank of Canada Governor Tiff Macklem highlights risks from less-regulated non-bank debt players amid stretched market valuations and geopolitical tensions, urging improved oversight.
- On March 4, 2026, the Bank of Canada warned new non-bank debt players aren’t as closely monitored and could increase financial risks, Governor Tiff Macklem said in Toronto to the Global Risk Institute.
- Banks and traditional financial institutions faced tighter regulations after 2008, but non-bank players lack comparable reporting, Macklem said, adding geopolitical risks from the United States and Israel attacks on Iran compound market stress with trade and artificial intelligence uncertainty.
- Hedge funds now dominate parts of government bond auctions, buying up to half of Government of Canada bonds and playing a major role in secondary market trades, while private credit and pension funds expand lending with flexible terms.
- The Bank of Canada called for joint resilience measures, urging private‑public communication to prepare for risks that may be growing faster than authorities can understand and mitigate.
- Many newer lending models remain untested under severe stress, Macklem said equity and credit markets show stretched valuations raising risks amid high economic uncertainty.
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25 Articles
The Toronto Star+24 Reposted by 24 other sources
Economic uncertainty must not become financial market instability: Macklem
OTTAWA - The head of the Bank of Canada warns new players in global debt markets aren’t as closely monitored as traditional banks, which could drive new risks in a period rife with uncertainty.
·Toronto, Canada
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Total News Sources25
Leaning Left17Leaning Right0Center3Last UpdatedBias Distribution85% Left
Bias Distribution
- 85% of the sources lean Left
85% Left
L 85%
15%
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