The recent legislation requires the Board to tailor its framework of supervision and regulation of large firms in a manner that continues to recognize size as one risk factor, but also more holistically incorporates other risk categories. In implementing this legislation, we should consider tailoring regulation further to take into account large banks’ complexity and interconnectedness.
As a nation, we are clearly learning from experience and adapting to change. Over the past decade, we have done much to implement sound macroeconomic policies and structural reforms that have helped our economy become more flexible and thus more adaptable to change. Canada's strong economic performance in the face of major disturbances over this period attests to the importance of flexibility.