Efficiency and microeconomic policies Financial institutions When I raised the topic of financial institution efficiency two years ago, I noted that following the 1964 Porter Commission, Canada became a world leader in terms of modernizing regulation. Parliament passed legislation creating a regulatory framework for financial institutions that led to greater competition, lower costs, and improved efficiency.
Risks to economic activity  In the April 2011 Outlook Report, the Bank listed the following as risk factors concerning the outlook for economic activity: (1) uncertainty about the possible effects of the earthquake disaster on Japan’s economy; (2) firms’ and households’ medium- to long-term growth expectations; (3) developments in overseas economies; and (4) the effects brought about by a possible further rise in international commodity prices.