Because of the importance of ancillary products and exchanges where transactions are cleared, the Canadian Derivatives Clearing Corporation, the London Clearing House4 and the Montréal Exchange are observers. We feel this provides a full perspective on the market. The working group is currently meeting monthly. In addition, we want and need feedback from a wide range of stakeholders, including various Canadian regulatory authorities.
Thus, we expect some banks to have issues on their credit portfolio. Banks are aware of the consequences, which prodded higher provisioning on their loans. Rest assured though, that the banks’ comprehensive risk management systems implemented under close BSP guidance provides the banks with the resources to effectively manage underlying credit risk.