Canadian Banking 'Well Regulated'

by Mike Godfrey, Tax-News.com, Washington

01 November 2010

The Department of Finance and the Office of the Superintendent of Financial Institutions have appropriate practices in place to regulate and supervise Canada’s large banks, the Auditor General of Canada, Sheila Fraser, has said in her report tabled in the House of Commons on October 26.

The audit found that the ongoing exchange of information among key players helped Canada stay abreast of emerging issues during the recent global financial turmoil and allowed for timely and informed decision-making. This information exchange contributed to Canada’s relative success in navigating the financial crisis and helped maintain its financial stability.

The audit also found that the federal regulatory framework for banks and the supervisory approach reflect emerging domestic and international developments, which is especially important when financial markets are changing rapidly.

“Experts have linked Canada’s relative success during the recent global economic downturn to its approach to regulating and supervising banks,” Fraser said. “Rapid changes in financial markets present an ongoing challenge.”

“Banks play a key role in just about every economic transaction and are major sources of credit," she added. "Canada’s economic well-being depends on the health and stability of its banking system.”

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