Toronto Centre promotes stronger, more effective financial regulation and supervision around the globe in order to strengthen financial stability and improve access to financial services. This, in turn, contributes to improved economic growth, job creation, and poverty reduction.
By empowering individuals and agencies and providing them with the opportunity to network and share best practices, we increase the effectiveness of regulatory and supervisory personnel and enable the implementation of enhanced regulatory and supervisory frameworks, structures, policies and practices. This leads to enhanced financial sector regulation and supervision overall, particularly in low-income countries and emerging markets where Toronto Centre focuses the majority of its work.
A well functioning and well regulated financial system establishes the foundation for a strong, stable economy. It facilitates sustainable growth and job creation, improves living standards for all, and contributes to poverty reduction. In contrast, when the financial system fails everyone suffers, particularly the most vulnerable. As we have seen in recent years, poor financial supervision has been a factor in several financial crises and in the failure of a number of financial institutions. The consequences are not merely financial. Losses from financial crises push people into poverty, prevent people from escaping it, and are contributing factors in worsening health outcomes and child deaths.
We have learned that countries with the strongest regulatory and supervisory systems are more immune to, and rebound the quickest from, financial crises. We have also seen that having inclusive financial systems is an important part of helping people lift themselves out of poverty. Recognizing the importance of financial supervision to the sustainability of their markets – including microfinance and microinsurance sectors – and to financial stability in general, agencies from around the world are turning to Toronto Centre for help building and improving their regulatory and supervisory capacity.