{
  "title": "Canada: Financial Sector Assessment Program-Technical Note-Systemic Risk Oversight and Macroprudential Policy",
  "publication": "IMF Staff Country Reports, January 24, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2020/01/23/canada-financial-sector-assessment-program-technical-note-systemic-risk-oversight-and-48973",
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  "summary": "This Technical Note provides a summary of the review of systemic risk oversight arrangements and macroprudential policy issues in Canada.",
  "sections": [
    {
      "heading": "Summary of the Technical Note",
      "content": "- Provides a summary of the review of systemic risk oversight arrangements and macroprudential policy issues in Canada.\n- Discusses existing systemic risk oversight arrangements and potential challenges.\n- Presents steps to modernize the framework to ensure effectiveness going forward.\n- Focuses on systemic risk surveillance (current approaches and challenges such as data gaps and coordination) and macroprudential policy issues (toolkit, current policy stance, and overall policy effectiveness).\n- Concludes that steps can be taken to improve the current system with a more formalized arrangement for systemic risk oversight.\n- States that a single body in charge of systemic risk oversight would be the first-best option.\n- Recommends that, over time, the authorities should review whether systemic risk oversight under the Heads of Agencies Committee leadership with no statutory mandate is adequate.\n- Notes that macroprudential policy at the federal level has been effective; however, better coordination is essential given multiple provincial authorities’ ownership of prudential tools."
    },
    {
      "heading": "Systemic Risk Surveillance: Current Approaches and Challenges",
      "content": "- Emphasis on systemic risk surveillance as a core focus of the review.\n- Identified challenges:\n  - Data gaps.\n  - Coordination issues among authorities.\n- Suggested modernization steps aimed at ensuring the effectiveness of surveillance going forward."
    },
    {
      "heading": "Macroprudential Policy: Toolkit, Stance, and Effectiveness",
      "content": "- Reviews the macroprudential toolkit available in Canada.\n- Assesses the current policy stance.\n- Evaluates overall policy effectiveness:\n  - Concludes federal-level macroprudential policy has been effective.\n  - Highlights the need for better coordination because multiple provincial authorities own prudential tools."
    },
    {
      "heading": "Key Recommendations and Institutional Options",
      "content": "- Move toward a more formalized arrangement for systemic risk oversight.\n- Establish a single body in charge of systemic risk oversight as the first-best option.\n- Review whether systemic risk oversight under the Heads of Agencies Committee leadership with no statutory mandate remains adequate over time.\n- Improve coordination between federal and provincial authorities given the provincial ownership of prudential tools.\n\n---\n\n Content in this bundle\n\n- 1canea2020004\n  - 1canea2020004 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - 1canea2020004 (PDF){rel=\"external\" type=\"application/pdf\"}"
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    "Published: January 24, 2020",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9781513527185.002",
    "Provides a summary of the review of systemic risk oversight arrangements and macroprudential policy issues in Canada.",
    "Discusses existing systemic risk oversight arrangements and potential challenges.",
    "Presents steps to modernize the framework to ensure effectiveness going forward.",
    "Focuses on systemic risk surveillance (current approaches and challenges such as data gaps and coordination) and macroprudential policy issues (toolkit, current policy stance, and overall policy effectiveness).",
    "Concludes that steps can be taken to improve the current system with a more formalized arrangement for systemic risk oversight.",
    "States that a single body in charge of systemic risk oversight would be the first-best option.",
    "Recommends that, over time, the authorities should review whether systemic risk oversight under the Heads of Agencies Committee leadership with no statutory mandate is adequate.",
    "Notes that macroprudential policy at the federal level has been effective; however, better coordination is essential given multiple provincial authorities’ ownership of prudential tools.",
    "Emphasis on systemic risk surveillance as a core focus of the review.",
    "Identified challenges:",
    "Suggested modernization steps aimed at ensuring the effectiveness of surveillance going forward.",
    "Reviews the macroprudential toolkit available in Canada.",
    "Assesses the current policy stance.",
    "Evaluates overall policy effectiveness:",
    "Move toward a more formalized arrangement for systemic risk oversight.",
    "Establish a single body in charge of systemic risk oversight as the first-best option.",
    "Review whether systemic risk oversight under the Heads of Agencies Committee leadership with no statutory mandate remains adequate over time.",
    "Improve coordination between federal and provincial authorities given the provincial ownership of prudential tools.",
    "**1canea2020004**"
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