The Canadian Bankers Association commended the federal government for announcing three measures in the 2005 budget, which it says enhance the efficiency of Canadian financial markets.

The CBA says it welcomes the federal government’s decision to proceed with a review of Canada’s financial services legislation and policy framework, which includes the Bank Act.

“We are delighted that the government is proceeding with its review of the Bank Act and we’re eager to share our thoughts on how to ensure that Canada’s regulatory system, which governs virtually all aspects of banks’ operations, keeps pace in today’s rapidly evolving financial services marketplace,” said Raymond Protti, president and CEO of the CBA, in a release.

The federal government also announced clarification of the roles and responsibilities for the Office of the Superintendent of Financial Institutions (OSFI) and the Canada Deposit Insurance Corporation (CDIC), reducing the regulatory burden on the financial services industry.

“The banking industry has supported the need to make OSFI the single prudential regulator, with one set of rules and standards, while maintaining CDIC’s authority over deposit insurance funds and their use,” said Protti. “We applaud the government’s foresight and we greatly appreciate the significant work they have done in cooperation with OSFI and CDIC to streamline the regulatory framework.”

The CBA and the banking industry also welcome news that the federal government and interested provinces and territories will meet soon to explore how to build on recent progress in respect to securities regulation.

“We are very supportive of the government’s initiative to improve securities regulation in Canada and we offer any help we can provide to the government to move the process forward,” added Protti.