The North-South Institute



Canadian Banks in the Financial and Economic Crisis

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Canadian Banks in the Financial and Economic Crisis

Published: June 25, 2010

An interesting aspect of the 2007/2008 financial crisis was the remarkable success of the Canadian banks in weathering it as compared to banks in most other countries. Canada was the only G7 country that did not have a government bank bailout. Canadian banks remained profitable through the crisis. A World Economic Forum report ranked Canada first among 134 countries on the soundness of its banks. Canada was widely applauded for its performance, including by US President Obama, who noted “Canada has shown itself to be a pretty good manager of the financial system and the economy in ways that we haven’t always been.” Newspaper headlines like “What Toronto can teach New York and London” proliferated. Not surprisingly, this success has created a great deal of interest in looking to Canada for lessons on what policies and regulations should be put into place to prevent or manage future crises.

Author: Tony Porter

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