本文发表在 rolia.net 枫下论坛Globe and Mail Update
October 9, 2008 at 9:38 AM EDT
OTTAWA — Finance Minister Jim Flaherty is recognizing that Canadian families are suffering “dramatic losses” because of the global financial crisis, and is promising to take measures that will ensure borrowers have good access to credit.
In a news conference before leaving for high-stakes meetings with the Group of Seven rich countries and the International Monetary Fund in Washington over the weekend, Mr. Flaherty emphasized that Canadian banks are “solid” and “solvent” but also recognized that credit is increasingly scarce.
“We are doing everything to ensure we can navigate through these troubled waters, and protect Canadians,” Mr. Flaherty said. “The government stands ready to take whatever actions are necessary to protect the stability of the Canadian financial system.”
He would not give any specifics about what he would do to ensure better access to credit for Canadian borrowers, however. Rather, he stressed what he would not do: bail out banks.
Finance Minister Jim Flaherty
Finance Minister Jim Flaherty
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“We are not looking at a rescue package for banks,” he told reporters. “We are not looking at creating any additional risk for taxpayers.”
He added he had “absolutely no concern about the health of our Canadian financial institutions. I have concerns about the availability of credit.”
He also rejected any notion of increasing insurance on bank deposits. Countries around the world have quickly moved to guarantee bank deposits as the first step in protecting their economies from the fall-out of the global financial crisis, , and to discourage depositors from pulling their money out of banks and putting it under their mattresses. But Mr. Flaherty said there is no need to follow suit in Canada.
“I think what we have right now is adequate.” But he would not give any details about what specific measures he was contemplating and dodged questions about expanding CMHC lending programs, except to say it is a possibility. Any new measures will target the availability of credit, and not aim at subsidizing banks for their losses, or even focus on the cost of credit.
“If we have to take measures I'll be happy to tell you,” he said.
His tone was remarkably different than Prime Minister Stephen Harper's main message in the pre-election debates earlier this month. At that time, he said Canada's economy was in good shape and suggested Canadians were not worried about losing their homes and their jobs because of the global slowdown.
Instead, Mr. Flaherty said he knows Canadians are worried about the global economy, job security, their homes, and losses to retirement savings.
“People are worried about the global economy and its effects in Canada. They're also worried about their job security, they're worried about their homes,” he said.
“I share their concerns,” he said.
The meetings starting Friday in Washington are key to hammering out a solution and calming the turmoil.
Canadian financial institutions are strong, Mr. Flaherty added, but are getting seriously side-swiped by global forces, and he wants to make sure credit does not become so scarce in Canada as to cut into business investment activity, real estate, and the overall health of the Canadian economy.
“The disruption of global credit markets that originated in the United States will continue to have spillover effects on Canadian financial institutions,” he warned. “The spillover effect can – if there's not adequate liquidity in the system – can make it difficult for Canadians to obtain credit.”
He wants the G7 to meet a second time in coming weeks, and also wants a leaders' summit to make sure the decisions made by officials are actually implemented, and quickly.
He seemed ready to forgive Canadian banks for not passing along to their customers all of the half-percentage-point interest-rate cut by the Bank of Canada this week. The commercial banks balked at the large rate cut, and only lowered their own prime rates by a quarter of a percentage point, saying they couldn't afford to do any more.
“I'm concerned about that. I know many Canadians are,” Mr. Flaherty said. “I can't say I'm surprised”
That's because Canadian banks have to finance their daily operations on global credit markets, where borrowing costs are volatile and rising sharply.
“So what I've said to the banks is, do as much as possible in the present circumstances” Mr. Flaherty said. “My concern, again, is less the cost of credit – that is, the price – but the availability of credit. We have to ensure that credit continues to be available.”更多精彩文章及讨论，请光临枫下论坛 rolia.net
October 9, 2008 at 9:38 AM EDT
OTTAWA — Finance Minister Jim Flaherty is recognizing that Canadian families are suffering “dramatic losses” because of the global financial crisis, and is promising to take measures that will ensure borrowers have good access to credit.
In a news conference before leaving for high-stakes meetings with the Group of Seven rich countries and the International Monetary Fund in Washington over the weekend, Mr. Flaherty emphasized that Canadian banks are “solid” and “solvent” but also recognized that credit is increasingly scarce.
“We are doing everything to ensure we can navigate through these troubled waters, and protect Canadians,” Mr. Flaherty said. “The government stands ready to take whatever actions are necessary to protect the stability of the Canadian financial system.”
He would not give any specifics about what he would do to ensure better access to credit for Canadian borrowers, however. Rather, he stressed what he would not do: bail out banks.
Finance Minister Jim Flaherty
Finance Minister Jim Flaherty
Related Articles
Recent
* Pressure on G7 after lukewarm response to rate cuts
* Banks' rebellion means tighter crunch on Main St.
* What the interest rate cuts mean to consumers
* Banks trim prime but lag BoC cut
* Major central banks slash rates in extraordinary move to ease crisis
* Lucky or prescient? Chrétien takes credit for stronger banks
* Britain bolsters banks
* Fed, Bank of Canada cut rates in co-ordinated action
* Major central banks slash rates in extraordinary move to ease crisis
* Economists trim Canada's growth outlook
* Rate cuts get economists' thumbs-up
* Why this slump will be 'long and deep'
The Globe and Mail
“We are not looking at a rescue package for banks,” he told reporters. “We are not looking at creating any additional risk for taxpayers.”
He added he had “absolutely no concern about the health of our Canadian financial institutions. I have concerns about the availability of credit.”
He also rejected any notion of increasing insurance on bank deposits. Countries around the world have quickly moved to guarantee bank deposits as the first step in protecting their economies from the fall-out of the global financial crisis, , and to discourage depositors from pulling their money out of banks and putting it under their mattresses. But Mr. Flaherty said there is no need to follow suit in Canada.
“I think what we have right now is adequate.” But he would not give any details about what specific measures he was contemplating and dodged questions about expanding CMHC lending programs, except to say it is a possibility. Any new measures will target the availability of credit, and not aim at subsidizing banks for their losses, or even focus on the cost of credit.
“If we have to take measures I'll be happy to tell you,” he said.
His tone was remarkably different than Prime Minister Stephen Harper's main message in the pre-election debates earlier this month. At that time, he said Canada's economy was in good shape and suggested Canadians were not worried about losing their homes and their jobs because of the global slowdown.
Instead, Mr. Flaherty said he knows Canadians are worried about the global economy, job security, their homes, and losses to retirement savings.
“People are worried about the global economy and its effects in Canada. They're also worried about their job security, they're worried about their homes,” he said.
“I share their concerns,” he said.
The meetings starting Friday in Washington are key to hammering out a solution and calming the turmoil.
Canadian financial institutions are strong, Mr. Flaherty added, but are getting seriously side-swiped by global forces, and he wants to make sure credit does not become so scarce in Canada as to cut into business investment activity, real estate, and the overall health of the Canadian economy.
“The disruption of global credit markets that originated in the United States will continue to have spillover effects on Canadian financial institutions,” he warned. “The spillover effect can – if there's not adequate liquidity in the system – can make it difficult for Canadians to obtain credit.”
He wants the G7 to meet a second time in coming weeks, and also wants a leaders' summit to make sure the decisions made by officials are actually implemented, and quickly.
He seemed ready to forgive Canadian banks for not passing along to their customers all of the half-percentage-point interest-rate cut by the Bank of Canada this week. The commercial banks balked at the large rate cut, and only lowered their own prime rates by a quarter of a percentage point, saying they couldn't afford to do any more.
“I'm concerned about that. I know many Canadians are,” Mr. Flaherty said. “I can't say I'm surprised”
That's because Canadian banks have to finance their daily operations on global credit markets, where borrowing costs are volatile and rising sharply.
“So what I've said to the banks is, do as much as possible in the present circumstances” Mr. Flaherty said. “My concern, again, is less the cost of credit – that is, the price – but the availability of credit. We have to ensure that credit continues to be available.”更多精彩文章及讨论，请光临枫下论坛 rolia.net