With exposures largely staying on balance sheet, Canadian bankers remained bankers rather than warehousers or traders. Consider what happened elsewhere. The severing of the relationship between originator and risk holder lowered underwriting and monitoring standards. In addition, the transfer of risk itself was frequently incomplete, with banks retaining large quantities of supposedly risk-free senior tranches of structured products.
The amendment of the BSP Charter in February 2019 provided the BSP with, among others, a strengthened mandate to promote financial stability in addition to its existing monetary stability function. The amended Charter also strengthened BSP supervisory function over money service and credit granting businesses and payment system operators.