Harper October 7, 2008
Harper says Canada not facing banking instability
Tue Oct 7, 2008 3:20pm
Oct 7 (Reuters) - Prime Minister Stephen Harper, fending off charges he is not doing enough to cope with the effects of the financial crisis, said on Tuesday that Canada's banking system was stable.
"What most of the leaders around the world are dealing with right now is not simply a drop in the stock market. Everybody has a drop in the stock market right now," the Conservative leader told CBC television in an interview ahead of the Oct. 14 election.
"Most of them are dealing with fundamental instability in our banking system, which we are not," he said, adding that the Canada had acted in the past year to limit extremes in mortgages and to improve banking transparency and disclosure. (Reporting by Randall Palmer; editing by Rob Wilson)
Canada reacts to credit crisis by buying mortgages
The Associated PressPublished: October 10, 2008
TORONTO: Canada is buying up to $25 billion Canadian (US$21 billion) in mortgage backed securities from the country's banks in an effort to maintain the availability of credit, the country's finance minister said Friday.
Flaherty Sept. 21/08
U.S.-style bank crisis won't occur here: Flaherty
Updated Sun. Sep. 21 2008 7:05 PM ET
CTV.ca News Staff
Finance Minister Jim Flaherty says that Canadians concerned about financial-sector problems in the U.S. can "rest assured our banks are solid."
He told CTV's Question Period on Sunday that the banking crisis in the U.S. is a concern for the global economy, but Canada has taken steps to make sure its financial sector will not end up in a similarly precarious situation.
"We have a solid banking system in Canada. Our banks are well capitalized. Our households are well capitalized... and our fiscal fundamentals are solid," he said.
The federal government said Friday it would inject up to another $25-billion of liquidity into the financial system through the purchase of insured mortgage pools.
In a speech delivered in Ottawa, Jim Flaherty, the Minister of Finance, said the move is aimed at maintaining the availability of long-term credit, which is under severe strain at present as banks are unwilling to lend to each other.