Kitchener, September 9, 2010
Jim Flaherty, Finance Minister of Canada, issued the following statement upon release of the World Economic Forum’s 2010-11 Competitiveness Report:
“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.
“Regulation alone is not necessarily the answer to the problem. Many of the institutions that failed around the world were regulated. The key is effective supervision.
“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.
“It’s no wonder that international leaders around the world praise Canada’s financial system as a model for others to emulate.
“Today’s ranking by the World Economic Forum is further evidence that Canada’s model does work and is an example to the world.”
For further information, media may contact:
Office of the Minister of Finance
Department of Finance
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