Sound regulation and supervision by federal institutions
Ottawa, 26 October 2010—The Department of Finance and the Office of the Superintendent of Financial Institutions have appropriate practices in place to regulate and supervise Canada’s large banks, says Sheila Fraser, the Auditor General of Canada, in her Report tabled today in the House of Commons.
“Banks play a key role in just about every economic transaction and are major sources of credit,” said Ms. Fraser. “Canada’s economic well-being depends on the health and stability of its banking system.”
The audit found that the ongoing exchange of information among key players helped Canada stay abreast of emerging issues during the recent global financial turmoil and allowed for timely and informed decision-making. This information exchange contributed to Canada’s relative success in navigating the financial crisis and helped maintain its financial stability.
The audit also found that the federal regulatory framework for banks and the supervisory approach reflect emerging domestic and international developments, which is especially important when financial markets are changing rapidly.
“Experts have linked Canada’s relative success during the recent global economic downturn to its approach to regulating and supervising banks,” added Ms. Fraser. “Rapid changes in financial markets present an ongoing challenge.”
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The chapter “Regulating and Supervising Large Banks” is available on the Office of the Auditor General of Canada website.
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