LaBrosse, John Raymond; McCollum, James F. --- "An Evaluation of the Canadian Financial Safety Net During the Global Financial Crisis" [2011] ELECD 507; in LaBrosse, Raymond John; Olivares-Caminal, Rodrigo; Singh, Dalvinder (eds), "Managing Risk in the Financial System" (Edward Elgar Publishing, 2011)

Book Title: Managing Risk in the Financial System

Editor(s): LaBrosse, Raymond John; Olivares-Caminal, Rodrigo; Singh, Dalvinder

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9780857933812

Section: Chapter 22

Section Title: An Evaluation of the Canadian Financial Safety Net During the Global Financial Crisis

Author(s): LaBrosse, John Raymond; McCollum, James F.

Number of pages: 18

Extract:

22. An evaluation of the Canadian
financial safety net during the
global financial crisis1
John Raymond LaBrosse and
James F. McCollum

22.1. INTRODUCTION

The Canadian financial sector came under some pressures during the
financial crisis, but these were relatively moderate and largely imported.
The Canadian banks were remarkably resilient, particularly compared to
those of other major advanced countries, such as the US and the UK, and
there were no institutional failures or bailouts. This performance has led
some observers to suggest that Canadian public policy in this area ­ the
characteristics of the financial safety net, including regulation, supervision
and coordinating mechanisms ­ may provide a model for other countries.
The chapter starts with an overview of the entities that make up the
financial system safety net and then describe, in Section 22.3, the coordi-
nating mechanisms. In Section 22.4, we focus on the Canadian mortgage
market and then consider the Canadian situation during the recent global
financial crisis in Section 22.5. The resiliency of the Canadian system is
examined in Section 22.6. In the penultimate section we propose some
ways to address two important gaps in the financial safety net ­ a means
to integrate the prospective national securities regulator into the safety net
and a policy to locate responsibility for overall financial system stability
within the safety net. The final section offers some conclusions.


22.2. THE PLAYERS
22.2.1. The Minister and Department of Finance

Through the Minister, the Department of Finance is the ...