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Rick Waugh, president and CEO of Scotiabank, leans on the podium at the bank's annual meeting in Halifax on Tuesday, April 5, 2011.
Rick Waugh, president and CEO of Scotiabank, leans on the podium at the bank's annual meeting in Halifax on Tuesday, April 5, 2011.
(Andrew Vaughan/THE CANADIAN PRESS)

New code for bank regulators: ‘Rules are not enough’

Global banking watchdogs are in the midst of a major paradigm shift.

In the five years since the financial crisis, regulators focused on tough, but necessary new rules for things like capital ratios. Now they’re turning their attention to the softer stuff.

Despite steadfast capital requirements and major bills like the Dodd-Frank Act, regulators acknowledge that these tough restrictions can only do so much. “Rules are not enough,” as one Canadian regulator recently put it.