FINWIRE®

Minister of Finance Welcomes Strong IMF Endorsement of Canada’s Financial Sector

February 21st, 2008

The Honourable Jim Flaherty, Minister of Finance, welcomed a comprehensive International Monetary Fund (IMF) review that grades Canada’s financial sector as one of the most highly developed and sophisticated in the world.

"This positive assessment shows that Canada is demonstrating leadership in the world financial system," said Minister Flaherty. "Despite global uncertainty, Canadians can be confident that their financial sector is stable and well-managed."

Canada is the first Group of Seven (G7) country to undertake the Financial Sector Assessment Program (FSAP) Update, which provides IMF member countries with comprehensive reviews of the stability of their national financial systems.

The assessment also rates a country’s implementation of a range of regulatory standards and codes.

"The Canadian financial sector is among the world’s most highly developed and offers many examples of best practice.

The institutions, markets, infrastructure, safety nets, and oversight arrangements that comprise the system are sophisticated, and include a full range of financial intermediaries," the IMF reports.

Minister Flaherty noted that the IMF report should bolster investor confidence amid volatility in global financial markets, that Canada’s financial system is solid, and that banks and other financial institutions are sound and well-capitalized.

The IMF report also suggested that moving towards a single securities regulator would allow policy development in Canada to be streamlined, reduce compliance costs and improve enforcement.

"The Government will consider carefully the recommendations of the FSAP Update in further strengthening the efficiency and stability of Canada’s financial system," said Minister Flaherty.

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