Reducing the Potential for Future Financial Crises: A Framework for Macro-Prudential Policy in Canada

Paul Jenkins and Gordon Thiessen
Additional contact information
Paul Jenkins: C.D. Howe Institute
Gordon Thiessen: C.D. Howe Institute

C.D. Howe Institute Commentary, 2012, issue 351

Abstract: Canada needs a policy framework and new governance structure beyond what is in place to reduce the potential for future financial crises. The authors make the case for establishing a formal committee with a mandate to identify potential systemic risks and to act promptly before they materialize. While Canada's system of regulating and supervising financial institutions might hold up as a model of good performance, changes can and should be made, say Jenkins and Thiessen. Future crises undoubtedly will have different antecedents than the last one, and we need to be sure that Canada's financial system will be equal to the task of dealing with them as they arise. The authors examine potential arrangements for macro-prudential policy in Canada and conclude that a formal committee is the preferred governance arrangement.

Keywords: Financial Services; Economic Growth and Innovation; Canada; Bank of Canada; macro-prudential policy (search for similar items in EconPapers)
JEL-codes: E58 G1 G2 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.cdhowe.org/public-policy-research/redu ... ential-policy-canada (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdh:commen:351

Access Statistics for this article

More articles in C.D. Howe Institute Commentary from C.D. Howe Institute Contact information at EDIRC.
Bibliographic data for series maintained by Kristine Gray ().