Canada's banking system a G20 model: PM
Prime Minister Stephen Harper says he will encourage other world leaders during the G20 meeting in Toronto this June to adopt the mechanisms of Canada's strong banking system.
Harper, speaking Thursday to business leaders from G20 countries in Gatineau, Que., praised Canada's banks, noting that they "rode high in the water" during the economic crisis and that no major financial institution failed or needed a government bailout.
He credited the strength of the system on strong active supervision by a regulatory framework that avoids risk and ensures transparency. He said Canada's banks also properly link performance with reward.
"These are the mechanisms that Canada will encourage when the G20 leaders discuss the financial sector because they work," Harper said.
The prime minister noted that there have been calls for "rigorous and punitive measures" against those responsible for the crisis, which includes the idea of a global bank tax.
But he said that Canada is "not part of that chorus" and that "you cannot tax the financial sector into stability."
Harper said the G20 should also show leadership in fighting protectionism.
Harper also announced that the federal government will give the University of Toronto $25 million to create a new centre to study issues of global security.