Tiff Macklem, senior deputy governor of the Bank of Canada, talked about the importance of completing the reform of the global financial system yesterday at the Rotman Institute for International Business Speaker Series in Toronto.
“The global economy is certainly underperforming,” he said, pointing to the sovereign debt crisis and the slowly recovering U.S. housing and labour markets. “But the current challenges are not an excuse for delay. They underscore the urgent need to make the financial system more resilient.”
Although the Financial Stability Board has completed some elements of the plan of action outlined by G20 leaders in 2009, to strengthen the financial system, there is still a lot to do Macklem said. In his view, there are three prerequisites to completing the global financial reforms. The reforms need to be:
• comprehensive: cover institutions, markets and products, from beginning to end;
• co-ordinated: co-ordinate across the elements of reforms and across jurisdictions; and
• consistent: implement reforms consistently around the globe.
Read Macklem’s full speech at bankofcanada.ca/2012/02/speeches/raising-the-house-of-reform.
You can also watch a video of the speech at youtube.com/watch?v=y37carlKzl4&feature=youtu.be.