At a Glance
my money
Helping You Understand Financial Planning and Investments
Canada’s financial industry:
well-positioned to weather the economic storm
It’s no secret that a credit crunch
and economic crisis are spreading
withstand market volatility
About the Canadian
banking system
and maintain obligations to
clients.
across global markets. In Canada,
the impact is being felt in the
I
Canadian banks are required
I
financial sector including the
by the federal government to
Toronto Stock Exchange (TSX).
maintain more than enough
have traditionally exhibited
capital
conservative lending practices,
Although Canadians may face
to
withstand
any
downturn in the markets.
challenges ahead as a result of
the global economic slowdown,
Canada’s
regulatory
system
helps ensure that the country
remains well-positioned to handle
the downturn. In fact, a recent
report from the World Economic
world’s
soundest
in part because the federal regulator,
I
the
Office
of
the
Canadian investment banking
Superintendent of Financial
operations are subsidiaries of
Institutions Canada (OSFI),
Canada’s five major banks.
requires it. In fact, OSFI has
This
provides
the ability to intervene to
steady access to capital, sound
protect the rights of depositors.
relationship
regulations, and the ability to
Forum rated Canada as having
the
Canadian financial institutions
bank
system, giving it a near-perfect
rating for having healthy and
strong balance sheets*.
*Source: http://www.weforum.org/documents/
GCR0809/index.html
Group retirement services are provided by Sun Life Assurance Company of Canada, a member of
the Sun Life Financial group of companies. © 2009, Sun Life Financial. All rights reserved.
Continued
(cont’d)
While no country is immune to the effects of the global economic
downturn, Canada’s banking system appears to be well-positioned to
weather the current economic storm.
Monetary officials are keeping close tabs on the situation, and seem
confident in Canada’s financial institutions. In a speech to the
Toronto chapter of the Risk Management Association given in January
2009, Bank of Canada Deputy Governor Pierre Duguay reassured
investors that the markets will remain open and ready for business.*
*Source: http://www.bankofcanada.ca/en/speeches/2009/sp09-1.html
Investors should take comfort in knowing that important steps have
been taken to make Canada’s banking system more resilient to
shocks. The Bank of Canada is placing increased emphasis on
identifying risks and vulnerabilities in the financial system to
develop an early warning system.
The economic downturn has shown that a greater emphasis must be
placed on risk management, and Canada’s banking system is
developing prudent and conservative strategies to help the markets
rebound.
Despite the recession, Canadian banks are still lending money,
and although credit is tighter than before, it is still available.
It is true that the past few months have been tough on the economy,
but the measures taken by Canadian monetary officials are helping
to minimize the impact of the global crisis on the country’s economy
and financial industry.
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At a Glance Newsletter, Group Retirement Services Marketing, Sun Life Financial, 225 King Street West, Toronto, ON M5V 3C5.
This bulletin has been created exclusively for you. It addresses issues to help you with your financial planning and investments, and cannot be
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01/09-st-eo