We have a system that works very well here in Canada. In particular, the focus of the Bank of Canada in monetary policy on price stability is essential, in our opinion, to the well-functioning of the Canadian economy. We have other responsibilities, most notably a shared responsibility with other agencies for the promotion of financial stability. Our principal role in that regard is to analyze risk to the Canadian economy, to financial stability like household debt, like the level of capitalization of banks, like potential financial implications of tensions in currency markets. There are monetary implications of that, but also financial implications. We share that perspective with this committee, with the public. We share it with other agencies, including very importantly the federal Department of Finance in Canada, so that, if appropriate in their judgment, policies they control could be adjusted to lessen the potential impact of those financial vulnerabilities.
This system works well. We have a good level of cooperation. I would say further that what we're all learning from the financial crisis--there are some lessons from the financial crisis, including for Canada, and they relate to the potential use of policy levers that address the health of the financial system as a whole, as opposed to individual institutions. Mr. Brison's questions earlier about loan-to-value ratios and the potential adjustments to elements of mortgage insurance to address vulnerabilities or tensions that build up in the housing market--that's an example; it's something that's been used in Canada.
Mr. Macklem referenced counter-cyclical capital for banks. That's a Canadian innovation at the Basel committee, and that's another example. So there are examples of these system-wide tools. A third example I'd add is margin requirements in the repossession market, which is something we're looking at very closely. There are several examples of the system-wide tools we are working through with our partners in Ottawa and across the country to determine their efficacy and advisability. That's not a change to the mandate of the bank, but I wanted to give you a richer answer to some of the issues we see coming out of the crisis.