The differences in stress test results obtained by supervisors’ and banks’ own models can be informative, and we do not want inadvertently to destroy the healthy diversity or innovation of the models and other risk-management tools used in the banking industry. Another challenge is that our stress scenarios cannot encompass all of the risks that banks might face.
The Bank expects that Canada’s financial institutions will continue to apply their high standards of risk management, for which they are being justly lauded the world over. Policy-makers and regulators, including the Bank of Canada, have responsibilities, as well.