Contrary to popular belief, Canada’s chartered banks are well-positioned to help the country ride out the current financial crisis. In his post, Banking on Canada, Gair Maxwell addresses a recent Newsweek article, praising the Canadian banking system as the global standard, and writes:
Did you know?:
– Canada is the only country in the industrialized world that has not faced a single bank failure during the current financial crisis.
– The World Economic Forum recently ranked Canada’s banking system the healthiest in the world. America’s ranked 40th. Britain’s 44th.
– Over the past 15 years, as the U.S. and Europe loosened regulations on financial industries, Canada refused to follow suit, seeing the old rules as useful shock absorbers.
– Canadian banks are typically leveraged at 18 to 1 compared with U.S. banks at 26 to 1 and European banks at a frightening 61 to 1.
Do you think the strong position of Canada’s banks will be enough?