Mark Carney, the governor of the Bank of Canada, on Monday said a "vicious" deleveraging process had taken hold of the eurozone's banking sector.

In a speech to the Empire Club of Canada and the Canadian Club of Toronto, held in Toronto, Ontario, Carney added that as the eurozone sank into recessions, ties of trade, finance and confidence, meant that "the rest of the world is beginning to feel the effects".

He said that the era of advanced economies steadily increasing leverage was now