Rather, they are intended to convey that the modifications - recent and future required in the supervision of those smaller banks are far fewer than those required for the LCBOs.
The toolkit also includes a careful build-up of our reserves. Reserves are for insurance. But it is not easy to determine an “optimal level” as some have suggested. The risks we are now insuring against are also evolving. That said, our experience in the recent crisis and its aftermath has taught us that it is critical to use the right tools for the job.