Although the Basel rules are commonly adopted by countries, the timely and effective adoption by OSFI has given Canadian banks a very strong capital and regulated position even during the financial crisis. Compared to U.S. banking regulations with overlapping responsibilities of permitting regulators, the existence of OSFI has standardized regulatory procedures. However, the financial environment is also limited by the change of some policies such as the Volcer Rule, which prevents US banks from trading financial instruments for their own benefit and also limits 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 under a bank holding company structure with Basel III capital, which can increase liquidity risk (Association,