In considering the role of monetary policy, the first step is to understand the range of tools available to promote financial stability and what types of risks each tool is best suited to address. The first line of defence is sound regulation and supervision institution by institution. In Canada, federally regulated financial institutions are supervised by OSFI.
I am also confident that Ms Olga Wittchen will continue this successful track record. Coming from our Directorate General for Banking and Financial Supervision, she is an expert in international banking regulation. I have worked with her on several projects on the Financial Stability Board – and I am convinced that she will put her skills towards fostering cooperation between Britain and Germany. 7.