If non-standard measures were considered to be ineffective, then interest rates would really be the only available tool to achieve price stability. In other words, we would conclude that, once interest rates reach their effective lower bound, central banks are, de facto, powerless.
Indeed, that is the case now for a couple of our largest institutions, particularly with respect to the internal audit process. Effective supervision of an LCBO requires a supervisory plan that is tailored to the institution’s current risk profile and organizational and operational structure and that considers the activities of other supervisors — highlighting, once again, the need for communication and coordination.