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OTTAWA (Reuters) - Canada's central bank chief and finance minister sent letters to their U.S. counterparts expressing concerns about the proposed Volcker Rule, which they said would have adverse effects on the Canadian financial system and global regulatory reform.
Bank of Canada Governor Mark Carney, in a letter to U.S. Federal Reserve Chairman Ben Bernanke, proposed two changes to the legislation that would effectively exempt Canada from some of the proposed restrictions.
"I would urge you, in finalizing these rules, to take into consideration the interconnectedness of the Canadian and U.S. financial systems, the potential for unintended impacts on the Canadian financial system and the possibility that the rule, as currently drafted, could reduce global financial resilience rather than increase it," said Carney, who is also chairman of the Financial Stability Board.
Reporting By Louise Egan; Editing by Jeffrey Hodgson