Date Published: 
07/29/2011

While the financial system in the States was busy pumping out mortgages to ‎whomever it could, Canadian regulators kept reasonably firmly to their rules and ‎criteria for loaning money.  They did not join the party. At that time banks in US ‎made fortune (since substantially unravelled), but it was a matter of time until ‎the inevitable happened. Clearly, Canada’s economy is still heavily linked to the ‎US economy, and when they get into trouble, Canada suffers as well.  However, ‎by keeping the local financial system out of writing troubled mortgages, there ‎was much less need to throw mountains of money at the economy to keep it ‎stable. From there the way to recovery was faster and straighter.


Risk Management Perspective: 

The Canadian story demonstrates in its own way how long planning, proper ‎regulations and keeping focused on basics (in this case, debt levels) is a ‎foundation element of a sound long term strategy.

 

Industry Group: 
Government Departments
Industry: 
Financial Services
Industry: 
Government
Country: 
Canada
Risk Class: 
Strategic
Risk Class: 
Financial
Risk Type: 
Reputation
Risk Type: 
Financial Environment - Capital & Credit
Risk Type: 
Economic Conditions

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