Canada 'Has World's Soundest Banking System'

by Mike Godfrey, Tax-News.com, Washington

20 September 2010

The Canadian government has remarked on the release of the World Economic Forum’s 2010-11 Global Competitiveness Report, which has affirmed Canada as having ‘the world’s soundest banking system’.

Commenting on the release of the report, Finance Minister, Jim Flaherty said:

“I am very pleased to see the World Economic Forum has ranked Canada’s banking system as the soundest in the world for the third consecutive year. Canada’s banks and other financial institutions are sound and well-capitalized, and were less highly leveraged than their international peers heading into the financial crisis. In contrast to many other countries, none of Canada’s banks required bailouts. Even during the worst days of the credit crisis, our financial institutions’ health allowed them to continue to raise capital.”

“The strength of our financial sector is the result of a sound regulatory regime, including capital requirements for financial institutions that are well above minimum international standards and higher than in many other jurisdictions, and a more conservative risk appetite among financial institutions.”

“In Canada we have a coordinated regulatory approach and that includes the Office of the Superintendent of Financial Institutions, the Bank of Canada, the Canada Deposit Insurance Corporation, the Financial Consumer Agency of Canada and the Department of Finance, all of whom work together in coordination to monitor macroeconomic issues.”

“[The] ranking by the World Economic Forum is further evidence that Canada’s model does work and is an example to the world.”

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