Annual Report 2017
The Annual Report outlines the Bank’s activities and achievements in 2017. It includes the financial statements and a message from Governor Stephen S. Poloz.
Canadians can look back at 2017 with considerable satisfaction. We saw economic growth of some 3 per cent, the highest in the G7; more than 400,000 new jobs were created; and inflation remained very close to the 2 per cent target. Economic indicators paint a positive picture for 2018 as well.
The Bank’s stimulative monetary policy helped inflation come closer to its target in 2017. To kick off its five-year research agenda leading up to the next renewal of the inflation-targeting agreement with the Government of Canada in 2021, the Bank invited more than 50 external economists, academics, journalists and policy-makers to participate in a full-day workshop.
The Bank has intensified its focus in recent years on identifying and assessing systemic vulnerabilities and risks in the Canadian financial system, publishing its findings twice a year in the FSR. New data describing individual loans helped to assess vulnerabilities in 2017.
A review of some key numbers related to the Bank of Canada’s work in 2017.
The Bank of Canada is the nation’s central bank. Its mandate, as defined in the Bank of Canada Act, is “to promote the economic and financial welfare of Canada.”
Consistent with the objectives of the government’s debt-management strategy for 2017–18, debt activities focused on refinancing government debt coming to maturity, raising stable and low-cost funding for government programs and services, and maintaining a liquid and well-functioning market for Government of Canada securities.
The Bank continues to provide Canadians with access to secure bank notes while keeping an eye on the transition to digital forms of currency.
Efficient, cost-effective and innovative operations promote employee engagement and productivity and contribute to the achievement of the business objectives established in the Bank’s medium-term plan (MTP).
Communications, outreach and stakeholder engagement activities ensure that the views of individuals, businesses and organizations in Canada are understood and considered by the Bank in the course of conducting its policy actions.
In the face of rapid changes to global financial networks—enabled by new technologies—central banks and related agencies have been working together to improve international financial systems and regulatory frameworks.
The Bank of Canada Act provides the legal authority and framework for governance of the Bank of Canada.
The Bank maintains a strong risk management culture and implements an enterprise risk management (ERM) framework that promotes consistent management of strategic, operational and financial risks.
The Bank’s holdings of financial assets are generally driven by its role as the exclusive issuer of Canadian bank notes. The Bank invests the proceeds from the issuance of notes into Government of Canada securities that are acquired on a non-competitive basis.