The Bank of Canada issued a report on risks to the Canadian financial system, highlighting asset-price inflation, household debt, climate change, cybersecurity and the rising popularity of cryptocurrencies. (The Logic)

Talking point: At a press conference, Bank of Canada governor Tiff Macklem said that while Canada’s financial system has weathered the COVID-19 crisis well, “there are plenty of reasons for us all to remain vigilant.” The report links the dangers of rapidly rising housing prices and climate change, noting the increase in natural disasters is putting Canada’s increasingly expensive, debt-fuelled real estate at risk. The central bank also said cryptocurrencies don’t pose a systemic risk to the financial system yet, but could if a large tech company decided to issue one. The warning comes amid a volatile week for cryptocurrencies, drawing attention to the amount of leverage being offered by some exchanges.