tool to lvrs that will enable us to more efficiently target financial stability risks. we've continued the mahi around implementing the new deposit takers act, which will transform our approach to the regulation of banks and other deposit takers, while helping to ensure the safety and soundness of deposit takers. the act introduces a new depositor compensation scheme ( dcs ) so depositors can have confidence that their deposits, in the event of a deposit taker failure, are eligible for compensation up to $ 100, 000 per depositor, per institution. a substantial work programme is underway to implement the new prudential framework for deposit takers. parts of the current banking ( prudential supervision ) act 1989 relating to the regulation and supervision of registered banks and the non - bank deposit takers act 2013 will remain in force until the remaining parts of the dta have been fully implemented. we've also continued our collaboration and engagement with industry around improving mori access to capital. we are working collaboratively with retail banks to help them understand the flexibility of the regulator regime, and it's been heartening to see some banks delivering innovative ways to support mori to build homes on their whenua / land. we look forward to our continued engagement with finance and expenditure committee and we welcome your questions. 2 / 2 bis - central bankers'speeches

healthy pace. and with widespread belief in the fed ’ s commitment to low inflation, there has been some room to explore the possibility that capacity has improved. as a result, the fed has been able to set monetary conditions that have encouraged output and employment to expand at rates that in the past could not have been sustained. and both unemployment and inflation have come down at the same time. to be sure, with tightening labour markets, there is some risk of an increase in inflation pressures in the united states. thus, one cannot rule out the possibility that the fed may have to raise interest rates somewhat further at some point. but any future increases in interest rates should not have to be large and may be conditioned by the implications of the recent international developments i mentioned earlier. what parallels can we find in all this for canada? the recent canadian experience the adjustment in canada to the forces of technological change and globalization has run behind that in the united states. because the restructuring was delayed, canada had to respond in a more dramatic fashion. we had to do more and do it faster. more importantly, our fiscal situation was more precarious and required stronger medicine. as a result, we ended up with more pronounced short - run disruptions and more catching up to do in terms of output and employment. these difficult but necessary adjustments in the private and public sectors of our economy were canada ’ s parallel to the u. s. headwinds. to compensate for the direct impact of these adjustments, as well as for their indirect effects on consumer confidence, the economy needed a substantial amount of monetary support. the bank of canada was able to provide such support once investor concerns about canada ’ s fiscal and political problems began to subside in late 1995. we did that by systematically reducing interest rates over the next year or so. as in the united states in 1991 - 92, short - term rates in canada were brought down during 1995 - 96 from over 6 per cent to about 3 per cent - - their lowest level in over 30 years. at the same time, the canadian dollar has been relatively low, providing support to the export sector. when we put interest rates and the exchange rate together - - as we must in order to correctly gauge the amount of monetary stimulus - - it is clear that monetary conditions in canada have been exceptionally stimulative for well over a year. this was entirely appropriate while our economy was still struggling against the headwinds of private and public sector restructuring. to return to my