Flaherty says Canada’s top bank ranking proves system works

Finance Minister Jim Flaherty said the World Economic Forum’s ranking of Canada’s banks as the soundest in the world for the third consecutive year is proof the Canadian regulatory model works.

The WEF’s Global Competitiveness Index ranks 139 countries based on factors such as their institutions, infrastructure, education and innovation. Overall, Canada slipped one place this year to 10th position, even though it maintained its No. 1 ranking in terms of the soundness of its banks.

Flaherty earlier this year fought off calls for a global banking tax to help pay for any future financial bailouts as part of global reforms to prevent a repeat of the 2008 crisis. He argued Canada’s banks didn’t need any taxpayer money during the crisis and shouldn’t be penalized.

“Regulation alone is not necessarily the answer to the problem,” he said in a release. “Many of the institutions that failed around the world were regulated. The key is effective supervision.

“Today’s ranking by the World Economic Forum is further evidence that Canada’s model does work and is an example to the world."

Canada overall came in 10th place in the rankings for global competitiveness, with Switzerland topping the table.

Canada benefits from highly efficient markets, with goods, labour and financial markets ranked 11th, 6th and 12th respectively, the WEF said.

It also has well functioning and transparent institutions and excellent infrastructure.

Its weak points are high taxes, inefficient bureaucracy, access to financing and tax regulation, it said.

The WEF’s Global Competitiveness Index ranks 139 countries based on factors such as their institutions, infrastructure, education and innovation. Overall, Canada slipped one place this year to 10th position, even though it maintained its No. 1 ranking in terms of the soundness of its banks.

Flaherty earlier this year fought off calls for a global banking tax to help pay for any future financial bailouts as part of global reforms to prevent a repeat of the 2008 crisis. He argued Canada’s banks didn’t need any taxpayer money during the crisis and shouldn’t be penalized.

“Regulation alone is not necessarily the answer to the problem,” he said in a release. “Many of the institutions that failed around the world were regulated. The key is effective supervision.

“Today’s ranking by the World Economic Forum is further evidence that Canada’s model does work and is an example to the world."

Canada overall came in 10th place in the rankings for global competitiveness, with Switzerland topping the table.

Canada benefits from highly efficient markets, with goods, labour and financial markets ranked 11th, 6th and 12th respectively, the WEF said.

It also has well functioning and transparent institutions and excellent infrastructure.

Its weak points are high taxes, inefficient bureaucracy, access to financing and tax regulation, it said.