Bank of Canada's Carney rejects pause in reforms

Wed Apr 4, 2012 6:12pm EDT
 
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OTTAWA (Reuters) - Financial regulatory reforms must continue until structural changes needed to make the banking sector safer are complete, Bank of Canada Governor Mark Carney told the Canadian Press on Wednesday.

Carney, according to the report, dismissed a request by the Canadian Bankers Association on Tuesday to pause the reforms to take stock of their impact so far and make sure there were no unintended negative consequences.

Carney is also chairman of the Financial Stability Board, the body tasked with drafting and monitoring implementation of global financial sector reforms.

These include increased capital and liquidity requirements for banks along with a host of other changes aimed at strengthening banks' resiliency to crises and ensuring taxpayers don't have to bail them out in the future.

Carney noted that Canadian banks did not ask for a pause during the 2008 financial crisis when the central bank and federal government provided billions of dollars of liquidity.

(Reporting By Louise Egan; Editing by Jeffrey Hodgson)