The countercyclical buffer itself should also help dampen excess credit growth. Recent research at the Bank of Canada estimated that for Canada, the net economic benefits to be gained from improving the safety and robustness of the Canadian and international financial system could amount to about $ billion – or about 13 per cent of GDP.
10 While it is neither possible, nor desirable, to eliminate risk-taking, by understanding it, identifying it, tracking it, and spotting dangerous trends, we can do much to prevent the buildup of imbalances that can lead to a crisis erupting. There is no magic bullet to safeguard the financial system.