The patient is doing better but is still in intensive care: That’s the Bank of Canada’s latest assessment of risks to the Canadian financial system amid a prolonged period of fragility for the global economy, The Globe and Mail reported. Risks to the Canadian financial system “have decreased somewhat” in the past six months, the Bank of Canada said in a report issued Thursday, the first release from the bank under the watch of new governor Stephen Poloz. The bank cited an easing of short-term risks in the U.S.

David Cameron’s hopes of agreeing an international deal on fighting tax evasion suffered a blow when Bermuda said it would not commit to a pact before next week’s summit of the Group of Eight leading economies, the Financial Times reported. UK officials fear that if some British Overseas Territories and Crown Dependencies fail to come into line, it could limit the scope for an ambitious agreement at the summit in Lough Erne, Northern Ireland.

A U.S. judge Tuesday approved Arcapita Bank B.S.C.'s plan to gradually liquidate itself in a process that conforms with Islamic Shariah law, which generally prohibits borrowing money with interest, The Wall Street Journal reported. The Bahrain investment firm entered bankruptcy protection last year with a goal of restructuring itself but ended up with a plan to orderly liquidate its private-equity investments.

It has been billed by the British government as “a turning point” in the battle against tax evasion and avoidance. When world leaders gather in Northern Ireland next week, they will set out to end tax havens and stem the illicit flow of funds out of some of the world’s poorest countries, the Financial Times reported. The agenda – focused on the ‘three Ts” of trade, tax and transparency – is both technically and politically challenging.

Seán Dunne faces the possibility of being declared bankrupt in Ireland as well as in the United States after a Connecticut court allowed Ulster Bank to continue its Irish bankruptcy action against him, the Irish Times reported. In a major setback for the Co Carlow developer, the US bankruptcy court in Connecticut, where he now lives, approved an application by Ulster Bank - one of his biggest creditors which is owed more than €300 million - to continue with Irish legal proceedings to have him adjudicated a bankrupt in Ireland.

Central bank forum the Bank for International Settlements laid out a blueprint on Sunday for how to recapitalise a major lender in the event of a failure, seeking to avoid the sort of chaotic ad hoc rescues seen since 2008's financial crash, Reuters reported. Authorities have been grappling since the collapse of U.S. investment bank Lehman Brothers five years ago with the question of how banks regarded as systemically important - or too big to fail (TBTF) - can be recapitalised without causing panic and without needing taxpayer cash.

Home buyers and investors are turning their backs on Mexico's low-income housing darlings, bringing a government-fueled boom that lasted more than a decade to a screeching halt. Scores of new homes in far-flung communities sit empty, while banks have canceled credit lines to some of the country's biggest housing companies, The Wall Street Journal reported. Homebuilders Urbi Desarrollos Urbanos SAB and Corporación Geo SAB, after luring more than $1 billion in foreign capital via overseas bond sales, skipped debt payments in April while they attempt to stave off bankruptcy.

Goldman Sachs Group Inc., which is already providing Arcapita Bank $350 million in bankruptcy exit financing, is now seeking to give the Bahrain investment firm a $175 million bankruptcy loan that would pay off existing lender Fortress Investment Group LLC, Nasdaq.com reported on a Dow Jones Business News story. In a Monday filing with U.S. Bankruptcy Court in Manhattan, Arcapita said the Goldman loan would pay off the $105 million still owed to Fortress and later convert into the $350 million exit loan that Goldman is already providing.

Three bond restructurings totaling about $9.7 billion in the Caribbean this year are failing to ignite economic growth and may not help the region avoid more defaults, according to Moody’s Investors Service, Bloomberg reported. The bond swaps this year didn’t go far enough to fixing the Caribbean’s “unsustainable” mix of debt and deficits, Warren Smith, the president of the Caribbean Development Bank, said May 22.

Japan's Elpida Memory Inc asked U.S. Bankruptcy Court in Delaware on Wednesday to enforce its reorganization plan sale to Micron Technologies Inc, a final step to creating the world's second-largest maker of memory chips, Thomson Reuters News & Insight reported. Boise, Idaho-based Micron has been losing money as the market for personal computers steadily loses ground to smartphones and tablets. Acquiring Elpida will allow Micron to create greater economies of scale and will rank the company behind Samsung Electronics in the memory chip market.