Canada: 'Bank Bashing' is a Popular Sport

Author ORCID Identifier

Poonam Puri: 0000-0003-3233-5019

Document Type

Book Chapter

Publication Date

2012

Source Publication

Banking Systems in the Crisis, edited by Marc Fovargue-Davies and Suzanne J. Konzelmann, 1st ed., Routledge, 2013, pp. 155–85, https://doi.org/10.4324/9780203095539-7.

Abstract

Although often criticized for their lack of creativity and risk aversion (Nivola and Courtney, 2009), Canadian banks survived the recent financial crisis with a remarkable level of profitability, high-grade liquidity, and public confidence, not seen in other jurisdictions. While financial institutions around the world collapsed or accepted government bailouts to remain viable, Canadian banks only required a modest government mortgage purchase program to insure high risk mortgages (Porter and Schwab, 2008). These factors led the IMF to regard the Canadian financial system as a paragon of international best practices (Nivola and Courtney, 2009) and the World Economic Forum to rank it the soundest financial system in the world (Porter and Schwab, 2008). The resilience of Canada’s financial sector is largely due to its conservative behaviour and regulatory framework, and the high degree of public trust in the Bank of Canada and other financial regulators (PwC, 2009).

Link to Full Text

Request a copy that is accessible using assistive technology (link opens in a new window)

Catalogue Record

Click here to access the catalogue record for this item.

Share

COinS