Central bank mulls wider payment-systems oversight
Bank of Canada to keep an eye on debt and credit card transactions
OTTAWA — The Bank of Canada may need to take a larger role in overseeing the nation’s payment systems, Bank of Canada deputy governor Larry Schembri says.
The central bank is working with the Finance Department to develop a new framework for overseeing payments such as debit and credit card transactions, Schembri said in a speech Friday in Charlottetown.
The Bank of Canada may expand its oversight to in- clude the Automated Clearing Settlement System, a retail-level network operated by the Canadian Payments Association.
“Like vital public utilities such as power and water, core national payment systems must be both safe and sound to ensure continuous operations,” Schembri said.
The central bank remains committed to achieving its two-per-cent inflation target, calling it “the best contribution that monetary policy can make to keeping the Canadian economy on a sustainable growth path,” Schembri, 57, said.
“In recent months, we have said that economic growth needs to become more balanced and broadly based, with more growth coming through exports and related business investment.”
The consumer price index rose 2.3 per cent in May from a year ago following April’s two-per-cent pace, Statistics Canada said last week.
In its April monetary policy report, the bank projected total inflation wouldn’t reach its two-per-cent target until the first quarter of next year. While the Bank of Canada has kept its rate at one per cent since September 2010, governor Stephen Poloz has said inflation will fall back below target if the expansion isn’t sustained.