develop a new comprehensive framework for the oversight of payment systems that articulates this vision. it needs to be flexible, forward looking, and risk - based to meet public policy objectives, even as payment systems evolve and new trends emerge. the challenge is to find the balance between ensuring safety and promoting efficiency. the oversight framework must instill confidence in the payments system and foster innovation and competition to meet user needs, support economic growth and promote financial stability. new players that are not currently subject to the same comprehensive regulatory oversight as traditional incumbents must be brought into the framework. in this vision, the bank of canada may play a larger role by overseeing prominent payment systems, in addition to those that are systemically important. 14 through this expanded role, within the new oversight framework, we would be able to help maintain a safe and efficient payment infrastructure, even as the market responds to emerging trends and end - user needs. what would this potential change in the bank ’ s role mean for the cpa? initial analysis indicates that the cpa ’ s acss exhibits characteristics of a prominent payment system and therefore could be subject to bank of canada oversight. 15 the vision for the other national retail payment systems is that they, too, would be subject to oversight that is proportional to risks. while newer retail systems are not systemically important or prominent, end - user protection is of particular importance. for instance, most collect information about users, which has commercial value. safeguards should be in place to protect this information. see the canadian payments act ( s. c. 1996, c. 6, sch. ), available at laws. justice. gc. ca / eng / acts / p4. 4 / index. html. users ’ interests can be defined broadly to include service level expectations, convenience, ease of use, price, safety, transparency of terms of use, privacy and effective redress mechanisms. international standards for the oversight of systemically important payments systems are defined by the cpss - iosco “ principles for financial market infrastructures ” ( committee on payment and settlement systems and technical committee of the international organization of securities commissions, april 2012 ). prominent payment systems do not pose systemic risk but a disruption or failure could cause, on a national scale, significant disruption to the ability of consumers and businesses to make payments or a general loss of confidence in the overall payments system. the bank of canada could apply standards to prominent payments systems, based on the cpss - iosco “ principles

both the economy and the financial system. these include physical risks from disruptive weather events and transition risks from adapting to a lower - carbon global economy. the bank is incorporating this risk into its analysis of the canadian economy and financial system. we are also working to improve our understanding of climate risks as they relate to our mandate. turning from vulnerabilities to risks, i will conclude by saying the overall risk to the canadian financial system has increased slightly since our last assessment nearly a year ago. this is due to the recent slowdown in economic growth in canada and abroad. however, as we said in our recent monetary policy report, we expect economic growth to pick up later this year. as for the risk of a severe house price correction, we judge that to be moderate and declining, with froth having decreased in the toronto and vancouver areas. meanwhile, the risk of a sharp increase in long - term interest rates driven by higher global risk premiums is moderate, but increasing. with that, senior deputy governor wilkins and i would be happy to answer your questions. 2 / 2 bis central bankers'speeches