Finance Minister Jim Flaherty has hinted that the government of Canada may provide additional supports to the domestic banking system, following Britain’s partial nationalization of three U.K. banks.
While Canada’s banks are considered to be quite solid, Flaherty explained that he would take whatever measures were necessary to ensure foreign banks did not gain a competitive advantage from their bail-outs.
“In Canada we are very fortunate that our financial system is strong. This is a competitive advantage that we will protect,” he said in a statement on Monday. “We will never allow our financial system, which has been ranked as the soundest in the world, to be put at risk by global events.
“The government stands ready to take appropriate action to avoid unintended consequences from policy measures by other countries that would put wholesale borrowing in Canada at a competitive disadvantage.”
 | Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com |