Traditionally, regulation of FIs in Canada has been

Question

Quizplus · Accepted Answer

The extensive regulation of FIs in Canada is due to their significance in the economy. The government recognizes the potential systemic risks associated with the financial industry and therefore implements measures to ensure the stability and safety of the sector. This has been demonstrated by the establishment of regulatory bodies such as the Office of the Superintendent of Financial Institutions (OSFI). The recent financial crisis did not necessarily indicate minimal regulation in Canada, but rather the strength of the regulatory framework that enabled the country to weather the crisis better than other nations.

Traditionally, Regulation of FIs in Canada Has Been