Carol Ann Northcott is the Bank’s Chief Risk Officer (CRO) and Managing Director of the Financial and Enterprise Risk Department (FER). As CRO, she reports to the Bank’s Board of Directors and works closely with management to identify and assess risks faced by the Bank. As the Managing Director of FER, she leads three teams that oversee enterprise, financial and credit risks.
Ms. Northcott was appointed as Chief Risk Officer in 2017 and as Managing Director of the newly created FER department in January 2019. She first joined the Bank in 1999, and in 2005 became an Assistant Chief in the Financial Stability Department. She was a Director in that department from 2009 to 2013 and represented the Bank on international working groups responsible for developing risk standards for banks and financial market infrastructures. Along with her deep understanding of enterprise risk management, she brings expertise in the Bank’s financial stability and oversight responsibilities.
Ms. Northcott served for three years as Vice President and Chief Risk Officer of Payments Canada, during which time she was responsible for the organization’s enterprise risk management program, security and business continuity planning, and research.
Ms. Northcott holds a master’s degree in financial economics from the University of Toronto.
The author reviews the theoretical and empirical literature to examine the traditional perception that the following trade-off exists between economic efficiency and stability in the banking system: a competitive banking system is more efficient and therefore important to growth, but market power is necessary for stability in the banking system.