When everyone is confident that the financial system is safe, there is less need either to keep precautionary resources or to spend on arrangements to guard against the effects of financial instability. Canada's clearing and settlement systems have been judged to be very sound.
2 In addition, they have been designed to operate using a relatively small amount of liquidity compared with systems in other countries. And this frees up resources that can be put to more productive use elsewhere. Our main goal in this area is to guard against costly financial instability.