Canada’s payment, clearing and settlements systems are enhancing risk management, but there’s still work to be done, concludes a report published by the Bank of Canada (BoC) on Thursday.
The report details the central bank’s oversight of various financial market infrastructure entities (FMIs). Following the financial crisis, global policymakers have sought to enhance standards and oversight of FMIs in order to promote financial stability and safety.
Overall, the BoC made “significant progress” in 2015, the report says.
For example, the central bank enhanced the frameworks that govern its oversight activities, the report notes. It also made progress in several policy areas, including proposals for the development of a resolution regime for FMIs in Canada, and implementing its responsibility for the oversight of prominent payment systems.
“Many of these priorities are multi-year initiatives and will continue in 2016,” the report adds.
Domestic FMIs made “substantial enhancements” to their risk-management practices in 2015, the report notes, but this also remains a work in progress. “Further enhancements to strengthen observance of the bank’s standards will be a focus of the designated FMIs in 2016,” the report says.