July 6, 2009
It feels good to be Canadian! Here is a quote from an interesting story from USA Today regarding the Canadian Banking system, and why the Canadian banks didn’t go crazy:
Our northern neighbor sometimes seems so similar to the United States that it’s hard to tell where the USA ends and Canada begins. Here’s one way: Canada is the place with healthy banks, taxpayers unscathed by megabillion-dollar bailouts and no need to overhaul financial regulation because it was done right the first time.
And, it always feels good to have your system ranked #1, as per the article:
As U.S. officials scramble to prevent a crisis sequel, the ability of Canadian banks to navigate the current financial storm is earning global plaudits. The World Economic Forum in October ranked the country’s financial institutions No. 1 in the world for solvency. U.S. banks came in 40th, two rungs behind Botswana.
Praise for the Canadian regulatory approach has come from former Federal Reserve Board chairman Paul Volcker as well as the head of the National Economic Council, Larry Summers. “Canada has come through this period with much less financial damage than we suffered. … I think there are some lessons in financial regulation to be gained from what’s happened in Canada,” Summers told USA TODAY in a recent interview.
However, I beleive that any developer currently looking for project financing would consider the current state of the Canadian banking system too mild and moderate. BuzzBuzzHome has spoken to numerous developers and builders with strong pre-construction sales (filled with mostly end-users), who are struggling to obtain construction financing and now months behind schedule due to the numerous hoops they are unnecessarily being forced to jump through.