Globally, banks have doubled the amount of Tier 1 capital they hold, and Canada’s banks have been at the forefront of this effort. Equally important are the standards that make banks more resilient from a liquidity perspective. I was pleased to be one of Canada’s representatives in Basel and to chair the working group on liquidity. Two new rules are being implemented.
The reinvestment phase This brings me to the second part of my remarks today—our QE program and monetary policy for the recovery. The economic recovery we have experienced to date has allowed us to gradually reduce the pace of QE purchases from at least $ billion a week to a target of $ billion a week.