Bank of Canada says economy no excuse to delay financial reforms

Tue Sep 24, 2013 12:51pm EDT
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OTTAWA, Sept 24 (Reuters) - A senior Bank of Canada official on Tuesday urged global policymakers to push ahead with financial system reforms despite economic weakness, saying financial stability was an important precondition for growth.

"Some have argued that, given the weak recovery, now is not the time for the broad financial sector reform being promoted by the FSB (Financial Stability Board). That argument is wrong-headed," Lawrence Schembri said in his first speech since being appointed as deputy governor in February.

He said the FSB, operating under the direction of the Group of 20 leading economies, closely monitors the effects of new regulations for any material unintended consequences.