Canada’s banks, ranked the soundest on the planet by the World Economic Forum, aren’t immune to collapses triggered by falling housing prices, according to the government official implementing new mortgage rules.
Canadian banks, bolstered by profits per employee 31 percent higher than U.S. lenders, added more than 2,800 workers in the most recent quarter while Bank of America Corp. and Washington Mutual Inc. shed thousands of jobs.
Compliance with IRS financial disclosure rules intended to nab U.S. tax evaders in Canada is proving complicated because of the large number of dual U.S. and Canadian citizens, tax lawyers on both sides of the border say.
Eight banks failed the European Union stress tests after regulators said July 15 they had a combined capital shortfall of 2.5 billion euros ($3.5 billion), less than predicted by analysts and investors.
The Supreme Court of Canada said that Finance Minister Jim Flaherty’s proposal to create a national securities regulator is unconstitutional, arguing that the federal government overstepped its authority into provincial jurisdiction.
Canadian banks won’t press the federal government to allow the lenders to merge or sell insurance in branches during a review of industry rules next year, the head of the Canadian Bankers Association said.