Canadian Bankers Association

Canadian Bankers Association

November 12, 2008 12:13 ET

Canada's Banks Welcome Federal Government's Steps to Facilitate Credit Markets

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2008) - The Canadian Bankers Association (CBA) welcomes the announcement today that the government will buy an additional $50 billion of insured mortgage pools through the Canada Mortgage and Housing Corporation (CMHC), will reduce the base commercial pricing of the Canadian Lenders Assurance Facility by 25 basis points and waive the 25 basis point across-the-board surcharge.

These steps are in addition to the move by the Office of the Superintendent of Financial Institutions (OSFI) to increase the allowable limit of innovative and preferred shares in Tier 1 capital and the Bank of Canada's measure to provide additional liquidity to the Canadian financial system through the Canadian Dollar Term Loan Facility, for which eligible collateral will be the non-mortgage loan portfolio.

"The steps taken by the federal government, OSFI and the Bank of Canada are prudent measures that will help ensure that our stable banks are not put at a disadvantage because of the steps other governments have taken to support their banks," said Nancy Hughes Anthony, President and CEO of the CBA.

Canada's ability to act in this measured fashion is possible because of our sound regulatory system and prudent, well-managed banks. As a result, banks in Canada have largely avoided the financial difficulties and sub-prime mortgage issues that have plagued banks in other countries.

"Banks continue to lend to creditworthy individuals and companies while taking into consideration the new realities in the marketplace," said Ms. Hughes Anthony. "Banks have a long history of helping their clients through difficult economic periods, and they remain committed to working with their customers and providing credit during these times of economic uncertainty."

The Canadian Bankers Association works on behalf of 51 domestic chartered banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 257,000 employees to advocate for efficient and effective public policies governing banks and to promote an understanding of the banking industry and its importance to Canadians and the Canadian economy.

Contact Information

  • Canadian Bankers Association
    Andrew Addison
    (416) 362-6093, ext. 220 or Cell: (416) 587-7733