Canadian Finance Minister Jim Flaherty will introduce legislation that will give the federal government the ability to approve or cancel planned purchases by the nation's top banks, he told CTV television.
"We want to make sure overall in the banking sector, and with respect to our financial institutions, that we have sound management practices, that we don't have any surprises," Flaherty said during an interview on CTV today. He didn't elaborate on how the rule might be structured.
Canada reviews banking regulations every five years, the finance minister said. The federal government had similar rules in place about a decade ago giving it a more extensive powers in bank acquisitions, he said.
Canada's banking system on Sept. 9 was ranked the world's soundest for the third straight year by the World Economic Forum. Canadian lenders including Royal Bank of Canada and Toronto-Dominion Bank withstood the financial crisis without taking government bailouts, and recorded only a fraction of the $1.3 trillion in writedowns taken by banks and brokers worldwide.
"We want to make sure that we're fully informed so that the system overall is protected," Flaherty said.
Separately, Canada will eliminate 70 tariffs as a step to help manufacturers reduce costs, worth about C$32 million annually in savings to them, the finance ministry said today in a statement. Canada has eliminated 1,800 tariffs since 2009, saving businesses C$435 million in costs, he said.
"It relates to things like fasteners in clothing and trailer parts and a series of things that were tariff-able before but are now an impediment to business," Flaherty told CTV.
