stresses to the broader financial system. equally important, banks around the world are more resilient today than they were before the 2008a€ “ 09 global financial crisis, thanks to significant improvements in financial buffers and risk management practices. here in canada, regulators have taken important steps to ensure that canada's financial system and canadian banks remain robust. 1 / 3 bis - central bankers'speeches nevertheless, if global financial stress were to re - emerge and prove more persistent, canada could see more significant spillover effects - especially if stresses triggered a severe global recession and interacted with existing vulnerabilities. let me now turn to carolyn to discuss all of this in more detail. thank you, governor. as the governor noted, the fsr is not a forecast. it's a deliberate look at what could go wrong and the resulting implications for financial stability. and this year we've reorganized the fsr to make our communication about these potential risks clearer. we've moved away from discussing financial system vulnerabilities and risks separately. instead, we've combined them and organized them under key sectors or areas of focus. this approach reduces repetition and allows for a more concise analysis of the kind of risk that could arise if future shocks were to occur. you can expect further changes and refinements in next year's fsr. let me take you through three areas we're monitoring closely. the first is canadian bank funding. banks channel money from savers and investors to borrowers. as interest rates go up, banks need to pay savers and investors more, so the funding they use to make loans becomes more expensive. this is an intended outcome of monetary policy tightening. the increase in bank funding costs is coming at a time when sources of low - cost deposits are declining. and canadian banks generally have more demand for loans than can be funded solely by canadian deposits and investments, so they rely on attracting additional funding from global wholesale markets. these markets can be significantly affected by global events, such as the recent banking stress. we are closely monitoring the combined impact of these factors on bank funding. the recent turbulence in global markets stemming from bank failures had little direct impact on canadian banks. but if global stresses were to return and persist, bank funding costs could rise beyond the higher levels induced by tighter monetary policy. in addition, in a severe stress situation, funding could also become harder to secure. in response, banks would likely constrain credit to households and

of national resources ), sets out a coherent package of reforms and investments that are meant to address, among other things, the challenges posed by climate change and the digital transition. it represents an important opportunity to increase the quality of our productive system and public institutions. according to our estimates, the measures envisaged by the nrrp could raise italy ’ s gdp by more than 2 per cent by 2024, an outcome consistent with interventions that are strongly concentrated in public investment spending. over a ten - year horizon, we assess that the reforms and the incentive plans for research and innovation laid out in the nrrp could boost productivity and thus increase gdp by between around 3 and 6 percentage points. let me conclude. the italian economy is under a fast and firm recovery from the sharpest contraction since the second world war. to reap the gains envisaged by the nrrp and stand ready to cope with ongoing global challenges it is of paramount importance that, in a context of relaxed financing conditions for households, firms, and sovereign, the investment plans and reforms are implemented in a prompt, effective and efficient way. 2 / 2 bis central bankers'speeches