Compared with similar-sized firms in the United States, these Canadian firms rely more on individuals for financing and less on financial institutions. 6 This, to me, suggests a market opportunity for our financial institutions. As well, additional sources of higher-risk capital are needed for Canada to be successful in modernizing the economy’s productive capacity through innovation and new technology.
For our part, the Bank of Canada, together with financial market participants, is helping by working to make our financial system more robust through continuously open commercial paper, interbank, and repo markets, and through stronger infrastructure arrangements. 7 These initiatives provide greater efficiency in the allocation of financial capital, which benefits all sectors of the economy. Allow me to conclude.