An Analysis and Recommendations to Ameliorate the Instability and Systemic Risk in the Financial System
“No set of regulations is ever a complete panacea for irrational panics, such as we have seen recently. But careful regulation can give a country a more stable financial system with clear benefits to the nation.
The recent set of financial institution proposals put forth by the U.S. Administration, as well as the proposals of the Bank for International Settlements, pose considerable challenges to Canada. The U.S. wide-ranging proposals will, if passed into law, alter the regulatory environment in the United States. The BIS proposals will be debated for some time and will influence the regulatory environment worldwide. Canada should be examining its financial institution legislation and regulation to bring it to a level to insure against the risks of instability and systemic risk.”
