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BULLET: CANADA BOC: Semi-annual Fin Syst Review has more.....>

CANADA BOC: Semi-annual Fin Syst Review has more cautiously 
optimistic tone than in June about Cdn fin syst. Says risks to Cdn fin 
syst still 'elevated' but 'some prel signs of improvement'. Better 
econ,new pol meas supprt prospects for addl progress. Identifies same 
fin syst vulnerabilities, risks as in June and repeats Cdn fin system 
resilient. Moderate mtg rate rise wld be 'manageable' for most borrwrs. 
Uncertainty about how hsehld debt will impct econ respnse to highr 
rates. Hsg imbal, hsehld debt remain key fin syst vulnerabilities. Risk 
related to severe recessn raisng fin stress still elevated but 
decreasing. Risk related to China, EM fin stress high but decreasng. 
Risk relatd to sharp L-T rates rise moderate but increasng. Risk of 
Toronto, Vancouver hsg price correctn 'moderate'. Data show some signs 
Toronto hsg may be stabilizing.

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