Scotiabank CEO says regulators should work closer with banks to grow economy

TORONTO – Scotiabank chief executive Rick Waugh says financial policy-makers need to work closer with the world’s biggest banks to ensure that new regulations don’t stifle economic growth.

Waugh said in prepared remarks that in order for banks to help the global economy they need to take on “a certain level” of risk.

He says it’s how those risks are managed by the banks that makes the difference.

Waugh tackled the banking regulation debate during a speech to the Economic Club of Canada in Toronto.

Capital levels at Canadian banks are widely considered to be stronger than most of their international peers under the new Basel III rules, which set out key measures of a bank’s health and ability to endure future economic downturns.

Waugh plans to retire in November and will be replaced by Brian Porter, currently the bank’s president.