Schembri Says Policy Makers Must Keep Financial Reforms
Bank of Canada Deputy Governor Larry Schembri said global policy makers must keep up the pace of financial sector reform to make sure there’s no repeat of the 2008 credit crisis.
Schembri, in a speech today in Ottawa about the Financial Stability Board, said policy makers should resist the temptation to ease reforms because economies are weak. Financial stability is a precondition for growth, said Schembri, in his first speech since becoming a deputy governor this year.
“As the dark days of the global financial crisis slowly fade in our collective memory, the real challenge is to maintain the momentum of reform,” Schembri said, according to the text of the speech posted on the central bank’s website.
The Basel, Switzerland-based Financial Stability Board, led by Bank of England Governor Mark Carney, is coordinating global regulators’ response to the worst financial crisis since the Great Depression to prevent a repeat of the turmoil that followed the collapse of Lehman Brothers Holdings Inc. and bailout of insurer American International Group Inc. Schembri was an adviser on FSB issues when Carney ran Canada’s central bank.
“The FSB has fostered the necessary co-operation and has made solid progress in coordinating the development of appropriate global policies to address the main weaknesses exposed by the crisis,” Schembri said.
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