third area would be to improve the efficiency of capital markets and the financial system in ontario and canada. we all know that an economy works better when its financial services sector is sound and efficient. a robust and well - functioning financial system is key, so that growing firms have access to credit, and savings can be efficiently recycled to help businesses expand. now, i am not here with a prescription for what needs to be done in this area. but we must not lose sight of the fact that the financial sector is an important contributor to economic growth in ontario. an efficient financial sector will continue to be a competitive advantage for this province, both in maintaining efficiency in our own market, and in providing an opportunity to export expertise around the world. so policy - makers have an interest in providing a framework that will allow our financial institutions and markets to compete in an increasingly globalized world. with global standards evolving rapidly, canada and ontario must be at the forefront in terms of efficiency and competitiveness. a fourth area of focus is the province ’ s infrastructure - it needs to be a contributor to industrial efficiency, not an impediment. an important part of this is transportation infrastructure. and this applies not only within the province, but also to the links with our trading partners in other provinces, other parts of north america, and overseas. but it is not just physical infrastructure that is important. we also need the right policy infrastructure in areas such as security, inter - provincial trade, and regulation. for example, as industries increasingly rely on just - in - time delivery, border delays can cause real damage to businesses. that is why it is critical to develop and maintain border crossings that are as safe as these times require, yet open enough to allow the rapid flow of goods and people. the fifth issue would be securing reliable sources of cost - effective energy for the future. ways must be found to foster the development of new sources of energy and to provide the right incentives for the efficient use of that energy. clearly, there is a need for an appropriate framework to encourage investment in electricity transmission and generation, including renewable energy and alternative technologies. so those are five critical elements that i see as part of ontario ’ s efforts to meet the challenges that lie ahead, and to take advantage of the opportunities presented by growing world markets. it is by no means a comprehensive list. there are many other important issues that i have not discussed. but i have tried to point out five areas that, in my opinion, policy

the board of governors on its upcoming review of whether the liscc operating committee receives information that is sufficient to reach sound supervisory decisions. one subset of this system - wide inquiry will analyze regulatory capture – specifically, how divergent views are presented to decision makers at the board. the review is expected to take several months. effective supervision means tough supervision and demands a focus on large banks that pose systemic risk. bank supervisors cannot prevent all fraud or illegal conduct or forestall all undesirable behavior in large, complex financial institutions. but we can help create more bis central bankers ’ speeches resilient, less complex, and better managed organizations that promote, rather than undermine, financial stability. v. conclusion the federal reserve will continue to improve its supervision and regulation of financial institutions. we understand the risks of doing our job poorly and of becoming too close to the firms we supervise. we work hard to avoid these risks and to be as fair, conscientious, and effective as possible. of course, we are not perfect. we cannot catch or correct every error by a financial institution, and we sometimes make mistakes. but in my view, a good measure of the effectiveness of supervision is the improved strength and stability of banks since the financial crisis. thanks in part to enhanced supervision and regulation, banks “ have the ability to meet their financial obligations and continue to make a broad variety of financial products and services available to households and businesses even in times of economic difficulty. ” 12 i can promise you that we will always strive to improve and that we will work hard to earn and retain your trust. i look forward to taking questions. scott g. alvarez, regulatory rulemakings, testimony before the committee on financial services, united states house of representatives, april 8, 2014. bis central bankers ’ speeches