Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173365
Authors: 
Mora, Patricia Palhau
Januska, Michael
Year of Publication: 
2016
Series/Report no.: 
Bank of Canada Staff Discussion Paper 2016-12
Abstract: 
Monetary policy and financial stability are closely intertwined, and the resilience of the financial system carries weight in this relationship. This paper explores whether the financial system is more resilient as a result of the G20's post-crisis agenda for financial regulatory reform. It summarizes the agenda's key measures and implementation schedules, both internationally and in Canada, reviews the effectiveness of the reform measures in preventing and addressing financial imbalances, and outlines outstanding issues. It finds that, to date, there is evidence that the G20's reform measures are increasing financial system resilience globally, especially in the banking sector. Yet, implementation is still ongoing, and it may be too early to judge how the reform measures are interacting with one another. In Canada, the resilience of the financial system is being enhanced by the ongoing implementation of more-rigorous global regulatory and supervisory standards. Consequently, the likelihood and impact of severe financial stress in the future should be reduced, supporting the primary focus of monetary policy on achieving its 2 per cent inflation target.
Subjects: 
Financial stability
Financial system regulation and policies
Monetary policy framework
JEL: 
E52
G01
G21
G23
G28
Document Type: 
Working Paper

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