XIAM007

Making Unique Observations in a Very Cluttered World

Friday, 10 July 2009

There Is More to Why Canada's Banks Are Better

Reading: There Is More to Why Canada's Banks Are Betterhttp://seekingalpha.com/a/32f5

Yes, yes, Tim Horton's and poutine and health care and immigration and Oatley's beloved Habs. But why has Canada's banking sector held up so much better than... everyone else's?

The first answer given, like that given by Canadian Prime Minister Steven Harper, is often that they have a much stronger regulatory regime than the U.S. This is not entirely false... Canada does have stricter capital adequacy requirements for Tier 1 capital than the U.S. But as this Economix postdescribes, there is more to the story:

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