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    Why Do Canadien Banks Remain More Vibrant than The U.S.???

    By oldenGoldenDecoy on Wed, 02/18/2009 - 4:15am |

    .Well Duh . . .


    T-I-G-H-T-E-R   G-O-V-E-R-N-M-E-N-T   R-E-G-U-L-A-T-I-O-N ???


    Obama compliments Canadian regulation

    --snippet--

    The World Economic Forum said recently Canada had the soundest financial system in the world, with a rating of 6.8 out of 7.

    Toronto-Dominion Bank economist Craig Alexander said regulation force the banks to have a Tier 1 capital ratio of 7 percent, but that in practice the median in mid-2008 was 9.8 percent.

    "This is a higher capital ratio that in many other countries," Alexander said in a recent report.

    Alexander also noted that investment banks in Canada were folded into a larger diversified institutions late 1980s when the government allowed for it.

    "There appears to be a more risk adverse culture in Canada running through government, the public and banks. One feeds off another. It may be instrumental that Canadian banking is relatively dominated by a fairly small number of large banks that have been in business for a very long time," Alexander wrote.

    "Perhaps this long history deters actions to boost short-term profits at the expense of long-term risk."

    ~OGD~

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