markets. since the london summit, a great deal has been accomplished. and the financial system is much safer as a result. but there are still some important elements that remain to be completed, and we need to get these across the finish line. today, i want to quickly review the highlights of what has been achieved and then turn to four areas that need further work : leverage limits ; bail - inable securities ; core funding markets ; and finally, risk disclosure, governance and culture. bis central bankers ’ speeches in a nutshell, my message is that while the roots of this crisis were in complex instruments and interactions, the foundational elements for a more resilient financial system are not complex : bigger capital and liquidity buffers combined with a leverage backstop, rigorous and proactive supervision, and robust financial system plumbing. but risk is complex. completing the reforms and then ensuring ongoing healthy vigilance requires investments in risk management by both the private sector and the public sector. risk management is hard work. it can't be replaced by simplistic rules. there are no shortcuts. and risk does not take holidays – it only hides. the completion of the ambitious reforms laid out five years ago is within reach. this is essential to a return to sustainable, natural growth in the global economy. let's get it done. what ’ s been achieved to make banks safer, reform started by strengthening the bank capital regime. under the new basel iii rules, the minimum capital requirement is being raised, the capital requirements for riskier activities are being increased and the definition of capital is being strengthened. all in, the largest banks will have to hold at least seven times as much high - quality capital as they did before the crisis. while basel iii calls for these changes to be implemented over the next six years, banks are not waiting to rebuild confidence in their creditworthiness. since the end of 2007, major banks in the united states and europe have increased their common equity capital by $ 615 billion and their common equity capital ratios by almost 30 per cent. national legislation has now been adopted to implement the basel iii capital framework in virtually all g - 20 jurisdictions. canada was one of the first jurisdictions to implement it. by the beginning of this year, all major canadian banks had met the stringent basel iii requirements – six years ahead of the generous deadline of january 1st, 2019. to end the problem of “ too big to fail, ” a three - pronged approach

tiff macklem : management and financial reform remarks by mr tiff macklem, senior deputy governor of the bank of canada, presented to autorite des marches financiers, montreal, quebec, 18 november 2013. * * * introduction good morning and thank you for the invitation. it is a pleasure to be here in montreal, where i was born and raised. sound risk management in canada by both the private and the public sectors played a definitive role in steering us through the financial crisis. as you well know, none of our banks failed and none had to be rescued. and importantly, our financial system continued to function. so when the bank of canada injected exceptional liquidity and monetary stimulus, and the federal and provincial governments undertook extraordinary fiscal stimulus, credit flowed to households and businesses and they responded. as a result, we had the shortest recession and the fastest recovery in the g - 7. but i am not here to boast. lest we forget, we had our own risk - management failures here in canada. i am sure i don ’ t need to remind you that our non - bank asset - backed commercial paper market froze in the summer of 2007, at the onset of the crisis. and the crisis reminded us that keeping our own house in order is not enough. even if our financial system proved resilient, our exports plummeted 21 per cent in the wake of the global recession. and still today, our exports remain below their pre - recession level. the global financial crisis continues to cast a long shadow. this underscores the importance of completing the global financial reforms that were launched exactly five years ago this week at the first g - 20 leaders summit. convened by president george w. bush following the lehman failure, it was held in washington on the 14th and 15th of november in 2008. at the summit, the leaders agreed on a set of common principles for the reform of the global financial system. and five months later, at the london summit in april 2009, the leaders elaborated on those principles by committing to a sweeping and comprehensive reform agenda. their fundamental objective was to build a resilient global financial system that would serve households and businesses in good times and in bad. to do this, the leaders created the financial stability board ( fsb ), and gave it four core tasks : • make banks safer ; • end “ too big to fail ” ; • mitigate bank - like risks in the shadow banking sector ; and • ensure continuously functioning core financial