But to ensure our long-term economic well-being, financial and credit markets need to return to good health and stay in good health. To that end, we need policies that promote a stable, efficient, and sustainable financial system. That is what I would like to discuss today.
Specifically, I'd like to talk about two different kinds of financial system policy: one that has changed in response to the extraordinary events of the past year and a half, and one that needs to change to enhance the stability of the financial system. First I'll describe how the Bank of Canada has changed its liquidity policies and practices, especially since September 2008.