The chief financial regulator which is the central bank of Canada has to come up with reliable regulations that are favorable and also intervene in order to hinder some contraction of credits when they are most needed by the companies. Canadians should be in a position of accessing credits easily so that they can be able to withstand the worst economic scenarios that have been caused by the pandemic (Dey and Loewenstein, 2020). The productive level of Canada will be felt for a long period of time if the companies are not in a position of accessing viable credits which will help them support the economy at this particular time of the pandemic. The central bank should make sure that a conducive environment is set for every company in accessing credits, hence ensuring that creditors use favorable rules in giving credits as being guided by the bank so that the country can revamp its economy in a short time.

Creditors and Borrowers relations

The financial institutions and regulators must also ensure that they achieve their mandate of containing inflation rates closer to the required targets of stabilizing employment and the economy first. Normal operations cannot apply in this case since the country is being faced by the hit of the pandemic with requires a different approach which will help in building the economy. The financial markets are always being disrupted once there is a case of a pandemic like COVID-19 which affects the economy. The regulators are supposed to put in place comprehensive measures which will make sure that all financial system is always playing its mandate of providing credit to companies that need it most (Aaron and Ariel, 2020). The responsibility of the central bank of Canada is to ensure that both companies and individuals are at a position of ensuring enjoying the lending services despite the hard economic period of COVID-19. The banks support the well-being of the economy and other financial systems where it provides a conducive avenue for Canadians in accessing favorable environment of acquiring credits. The responsibility of regulators is to ensure that there is favorable environment of acquiring credit by all companies through the regulations outlined by the bank on how credits are to be accessed.

The financial institutions and regulators have also played a vital role in the case of US economy which has also been hit hard by COVID-19. The federal financial institution regulatory agency in consultation with other regulators resulted that the banks must work with the borrowers. This will enable the creditors to come up with a consensus on the modification of loans and how they will be able to be settled in the pandemic period. The borrowers have been affected badly through the outbreak of the pandemic hence making it hard for them to settle their loan obligation due to bad economic conditions which the creditors should evaluate in claiming their loans. The same mechanism used in Canada in the same approach used in the US which requires that people are able to access credits that are well structured and approved by the regulators. Regulators both in the US and Canada have a mandate of ensuring that the economy and financial markets are not worsened more in this particular time of the pandemic. There have been extraordinary disruptions which have been made by the outbreak of the pandemic and the regulators both in the US and Canada gave regulations that would enable the access of credit to small businesses which play an essential role in the growth of the economy (Dey and Loewenstein, 2020). The Federal Reserve Board in the US announced that they will temporarily and narrowly modify the growth restriction on Wels Fargo for it to provide more support for the small companies. The small business will have to access loans from Wels Fargo through the supervision of the Federal Reserve Board which is being considered by the firm as the paycheck protection program. This type of regulations will enable both countries to be able to revamp the economy back to normalcy since there is access of credit with is favorable in the pandemic period. In May 2020, the federal financial institution regulatory agency came up with the principle of giving small-dollar loans in a manner which is favorable and conducive in meeting financial institutions’ customers’ short- term credit requirements.

Monetary policy

The bank of Canada lowered the interest rates to ¼ % in order to support the economy activities which are supposed to counter the effects of COVID-19 pandemic. Regulators ideas on this matter is to ensure that consumers and businesses are supported through the lowering of payments of existing and the new loans which are allocated throughout the economy. The regulator also came up with several liquidity options and purchase procedures which will enable the markets to be functi