Carol Ann Northcott was appointed Chief Risk Officer (CRO), effective 2 January 2017. In this capacity, she works closely with management to identify and assess changes in the environment that could affect the level of risk faced by the Bank and to identify emerging risks. She brings to this role a deep understanding of the Bank’s oversight responsibilities, expertise in risk management related to payments systems and international standards, and a wealth of experience in financial economics and enterprise risk management and mitigation.
Ms. Northcott returned to the Bank at the time of her appointment following three years as Vice President and Chief Risk Officer of Payments Canada. During that time, she was responsible for the organization’s research unit and risk management program and led its security and business continuity plans.
Ms. Northcott 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.
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.