Even though the Basel rules are commonly adopted by countries, their rapid and effective adoption by OSFI has given Canadian banks a very strong capital and regulated position, even during the financial crisis. Compared to American banking regulation, where the responsibilities of regulators overlap, the existence of OSFI has standardized regulatory procedures. However, the financial environment is also constrained by the modification of certain policies such as the Volcer Rule, which prohibits U.S. banks from trading financial instruments for their own benefit and also restricts the trading and investment activities of Canadian banks. Another regulatory change made by the United States that impacts the business of Canadian banks is the treatment of foreign banking organizations (FBOs) that branches of Canadian banks operating in the United States must incorporate into a holding company structure. bank with Basel III capital, which can increase the risk of illiquidity (Association,