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Canada urges US, Europe to fix their banks

Canada urges US, Europe to fix their banks

Canada's finance minister said Wednesday he will urge the U.S. and Europe to fix their banking systems when he attends this weekend's G-20 finance ministers meeting in London.
Canada's prime minister and the country's central bank both have said the U.S. and European financial system must be repaired for there to be recovery from the global recession.
Finance Minister Jim Flaherty said Wednesday Canada will emphasize "the need, the imperative, of the United States to fix its banking system and the Europeans to fix their banking system," Flaherty said.
"We have to get the banking systems functioning properly in order to have reasonable access to financing and credit internationally."
Prime Minister Stephen Harper said that in spite of the strength of Canadian banks, the availability and cost of credit in Canada is being affected by the international financial crisis.
Harper predicted Tuesday that Canada will emerge from the global financial crisis faster than any other country but that it depends on when the U.S. financial system is fixed.
Canada has avoided government bailouts and has not experienced the failure of any major financial institution.
There has been no crippling mortgage meltdown or banking crisis north of the border where the financial sector is dominated by five large banks.
President Barack Obama said last month that the United States should "take note" of how Canada has shown itself to be a good manager of its financial system. Harper has said Canada has strong regulation that encourages a cautious culture in the banks.
Canada's big banks aren't as leveraged as their American or European peers. Canadians also pay much higher fees because of the concentrated banking system.
Flaherty also said they'll encourage countries at the G20 meeting to implement stimulus plans that are at least 2 percent of gross domestic product. G20 countries agreed to do that last year.
Canada's Conservative government unveiled a $32 billion economic stimulus package in January but the bill hasn't become law yet. Flaherty urged the Canadian senate to pass the bill.


Updated : 2021-05-06 19:21 GMT+08:00