One major step was taken in October, when 18 G-SIBs agreed to a protocol established by the International Swaps and Derivatives Association that will give authorities more time to organize an orderly resolution of a troubled bank. The success of this mechanism depends on its broad adoption by market participants, so industry also has a responsibility here.
If multilateral agreements prove intractable, bilateral agreements could be another way to reach the same goal, in light of the trend toward regional banking. In time, successful bilateral agreements could even serve as models for more ambitious multilateral agreements. Conclusion Let me wrap up. The global financial system is important to Canada. We’re a small, open economy, highly dependent on global trade.