In this issue of the Financial System Review, the Bank of Canada’s Governing Council judges that the risks to the stability of Canada’s financial system are high and have increased markedly over the past six months, owing primarily to an escalation of the sovereign debt crisis in the euro area and a weaker global economic outlook. The issue also summarizes recent work by Bank of Canada staff on specific financial sector policies and on aspects of the financial system’s structure and functioning. Published by Bank of Canada. [pdf]