Because of this, I am not in a position to comment on specific proposals for change. But what I can do is offer some general comments on the broad issues involved in ensuring an efficient and sound financial industry in Canada as we strive to adapt to ongoing worldwide changes in the provision of financial services. Potential reforms of the Canadian financial system Canadian financial institutions are among the best providers of financial services in the world. These days, they are operating in an intensely competitive global marketplace, teeming with change spawned by rapid advances in technology and innovative new financial products. These powerful forces have transformed the way financial institutions around the world operate and the way they market and deliver their services.
Globalization creates both opportunities and challenges.
We must make sure that Canadian financial institutions can compete effectively in both domestic and international markets, and that they can offer Canadians innovative, world-class financial services. The MacKay Task Force says this means we should enhance competition in the financial services industry. Primarily by reducing restrictions on existing providers of those services and by encouraging new players to enter the field. Members of this audience know that one of the proposals for strengthening the position of existing participants is to give credit unions the option to form co-operative banks. More generally, provided prudential concerns can be resolved, the Task Force suggests that the regulation of credit unions be re-examined to encourage them to become more active, dynamic competitors within the financial industry.