March 13, 2009
Wall Street Journal Praises Canadian Banks
Did you know that the weekend Wall Street Journal praises the Canadian banking system for its strength and stability? The WSJ explains that the key to this strength is our banks’ “limited exposure to toxic assets and their conservative mortgage lending policies.” More stringent regulatory requirements stop leverage ratios from going too high. Loan portfolios tend to be safer, with 20% down payments required unless loans are government guaranteed. Canadian banks also had stronger capital heading into the crunch, which will help them weather the recession with a healthy level of global competitiveness.
