18 May 2010

Canada sends worldwide message in opposition to a global bank tax

Senior Canadian ministers expressed their staunch opposition to the imposition of a global bank tax on financial institutions. “Our banks acted responsibly to avoid trouble throughout the recession, and it makes no sense to impose a punitive tax on them now.”

“Canada’s banking sector has been recognized as the world’s soundest,” said Minister Clement.

 

While the federal government is committed to establishing a strong regulatory framework for the global financial sector, it will oppose any efforts to impose a bank tax that would place Canada’s banks at a competitive disadvantage. Instead, Canada is urging other countries to consider capital rules that would support their banks in holding contingency funds that would be available if they face distress.

 

“Canada is, and will remain, opposed to a tax that would penalize financial institutions that remained strong and prosperous while many of the world’s banks failed,” affirmed Minister Clement.

 

The World Economic Forum and Moody’s Corporation have ranked Canada’s banking system as the soundest in the world, and the Government of Canada is committed to maintaining the conditions necessary for Canadian banks to succeed.

 

Press release