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- Oct 12, 2007
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Foreign bank tax won`t hurt Canada
Canada`s banks could benefit as other countries such as Britain and Germany push ahead with a bank tax, said Mark Carney, governor of the Bank of Canada.
Canada has staunchly opposed proposals by other G20 members for a levy on banks as a way to pay for government bailouts of the financial system, arguing that such a move would be counterproductive.
Mr. Carney said the bank tax now being imposed in other countries would only reinforce the idea that financial institutions will always get rescued when they get into trouble.
"It just reeks of moral hazard ... The end-game [of financial reform] is to take the moral hazard out," he told business leaders in Toronto yesterday.
Mr. Carney said Bay Street could end up with a competitive edge, since the federal government has made it clear it won`t follow suit.
Read full article here
Canada`s banks could benefit as other countries such as Britain and Germany push ahead with a bank tax, said Mark Carney, governor of the Bank of Canada.
Canada has staunchly opposed proposals by other G20 members for a levy on banks as a way to pay for government bailouts of the financial system, arguing that such a move would be counterproductive.
Mr. Carney said the bank tax now being imposed in other countries would only reinforce the idea that financial institutions will always get rescued when they get into trouble.
"It just reeks of moral hazard ... The end-game [of financial reform] is to take the moral hazard out," he told business leaders in Toronto yesterday.
Mr. Carney said Bay Street could end up with a competitive edge, since the federal government has made it clear it won`t follow suit.
Read full article here