Carney says consumers are propelling Canada to a stronger rebound from the recession than its G7 partners, but that the recovery remains vulnerable to over-indulgence.

He says his extraordinary low-interest rate policies are making it possible for Canadians to take on more debt, but says rates will increase and those affordable loans of today could prove unaffordable in the future.

He says banks should be particularly vigilant against risky loans, pointing out that even good loans became a problem during the U.S. subprime mortgage fiasco.

The central bank governor delivered his warnings at a noon-hour speech in Toronto, notes of which were released under embargo in Ottawa.