Additional financial reporting by the Bank of Canada isn’t warranted, says deputy governor Paul Jenkins.

Speaking to the Standing Senate Committee on National Finance, Jenkins said, ”The issue before us today is whether the amendments to the Bank of Canada Act contained in Bill S-217 will add value in terms of the proposed additional financial reporting. We certainly can provide that additional information but, in our view, it is not evident that providing that information would satisfy a cost-benefit analysis.”

“The Bank of Canada is not a commercial enterprise. Our balance sheet is structured to enable us to carry out two main responsibilities: the conduct of monetary policy and activities related to our role as lender of last resort,” he explained. “In terms of revenues and expenses, in 2006, we remitted $1.9 billion to the government through seigniorage. In the same year, our operating expenses were $264 million. It is not evident that providing, for example, a cash-flow statement or statement of retained earnings would contribute to meeting the objectives of Bill S-217.”

Jenkins said that the Bank supports the objectives of the bill: the promotion of sound financial management, openness, and accountability. “What is not self-evident in the case of the Bank of Canada, given our mandate, is whether the benefits of providing the additional information outweigh the costs,” he said.