The Silver Lining


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?

Show Buttons
Share On Facebook
Share On Twitter
Share On Google Plus
Share On Linkdin
Share On Pinterest
Hide Buttons