2024 CSA Systemic Risk Survey - Canadian Securities Administrators

Overview

The Canadian Securities Administrators’ (CSA) Systemic Risk Committee completed its third annual Systemic Risk Survey, which solicits views on financial risks from market participants.
Survey responses provide the CSA with critical information on market participants’ concerns about the stability of the Canadian financial system. This information helps the CSA promote financial stability and mitigate systemic risk.
The survey was completed by 536 investment dealers and portfolio managers domiciled in Canada between October 10 and November 4, 2024.
The survey’s response rate exceeded 55%. Aggregated results are reported below on an as-is basis.

Generally, respondents are less concerned about financial stability risks than last year. Less than 60% of respondents reported they were Somewhat Concerned to Very Concerned about the stability of the Canadian financial system, a decrease of 6 percentage-points from a year ago (Figure 1).
Only 16% of respondents indicated their level of concern had increased compared to a year ago, a more than 20 percentage-point decrease from last year’s responses (Figure 2).
Respondents were most concerned about household debt, cyber vulnerabilities, the geopolitical environment, and the housing market (Figure 3).
Household debt remains the top risk with 68% of respondents indicating that it poses a High Risk or Very High Risk to Canadian financial stability. However, the level of concern about Household debt is 7 percentage-points lower than last year.
Concern about the level of interest rates fell sharply in this year’s survey with 27% of respondents indicating it is a High Risk or Very High Risk, compared to roughly 68% last year (Figure 4).
Respondents considered the risks associated with artificial intelligence (AI) to be moderate. Less than 25% of respondents thought AI poses a High Risk or Very High Risk to the financial system.
The successful transition of interest rate benchmarks from CDOR to CORRA was noted positively by respondents. Benchmark transition was the lowest rated risk in the survey.