The federal government is moving ahead with changes to laws governing Canada's financial institutions that will give Ottawa greater authority over foreign acquisitions.

Finance Minister Jim Flaherty tabled the bill Wednesday to update the Bank Act, the Co-operative Credit Associations Act, the Insurance Companies Act and the Trust and Loan Companies Act.

By statute, the acts must be renewed by April 20, 2012.

Among the changes, all medium and large financial institutions that increase a bank's total consolidated assets by 10 per cent or more through a foreign acquisition must be approved by the finance minister. Under the current legislation, all that was required was a prudential review by the Office of the Superintendent of Financial Institutions.

A finance official explained that financial crisis of 2008-2009 had highlighted the need for more oversight. As well, the government proposes to increase the threshold that requires large banks to be widely held to $12 billion in equity from $8 billion.

The legislation also calls for increasing the maximum penalty for a violation of a consumer protection provision.

Flaherty noted in a release that Canada has been ranked as having the soundest banks in the world by the World Economic Forum for four consecutive years.

"Financial System Review Act will ensure our financial system continues to be secure for Canadians and a fundamental strength for our economy," he said.

A spokesman for the Canadian Bankers Association said the group will work with the parliamentary committees reviewing the bill to ensure the legislation meets the needs of the sector.