ECON 460 Study Guide - Comprehensive Final Exam Guide - Feminism, Canada, New Deal
20 Nov 2018
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Established in 1987 to contribute to public confidence in the canadian financial system (in context of bank failures). --an independent agency reporting to minister of finance. --supervises and regulates over 400 banks and insurers, and some 1200 federally regulated private pension plans. --regulatory areas: number of certain types of transactions, transaction risk, deposit ratio that must be maintained (liquidity), deposit insurance (deposits under a ceiling amount are guaranteed in case of a run on banks during a crash) etc. Risk and information that is difficult to understand: --when only a few experts can understand a policy, there is risk involved for bureaucrats who accept these policies without fully understanding them. --some regulators will rule out policies that are too complex to be understood by people with a moderate amount of expertise in the area; this is one way of managing risk.
