Regulation needs to adapt to changes in the environment without losing sight of its objectives. That is why the Financial Stability Board (FSB) started evaluating the reforms in 2017. [32] The evaluation shows that the G20 reforms have largely achieved their objectives without having any relevant side effects.
The assessment of financial stability is becoming more rigorous and now follows a more structured analytical process, informed by models, better data and richer dialogue. This leads to more informed judgments around the risks to the financial system. In this issue of the FSR, we have introduced an enhanced framework that explicitly identifies the underlying vulnerabilities in Canada.