Canada needs a policy framework and new governance structure beyond what is in place to reduce the potential for future financial crises, according to Paul Jenkins, former Senior Deputy Governor, and Gordon Thiessen, former Governor of the Bank of Canada. In "Reducing the Potential for Future Financial Crises: A Framework for Macro-Prudential Policy in Canada," a report released today by the C.D. Howe Institute, they make the case for establishing a formal committee with a mandate to identify potential systemic risks and to act promptly before they materialize.
