Canadian banks hold strong as US and Europe fall on 100 Mortgages

It’s unlikely the Canadian government will buy any shares in the country’s domestic banks because the banks in Canada are in far better shape than their European and US counterparts who have needed colossal assistants from their governments, according to market observers.

It’s also been said by analysts that Canadian banks have come out almost un-touched by the US subprime problems, some say it’s the conservative lending practices that have helped secure the Canadian banking system.

There are concerns that Canadian banks will face drawbacks as other countries inject capital into their local institution with plans like George Bush’s injecting $250 billion into the ailing US banking system.

President Bush said today that the US government would purchase shares in the big American banks as part of the $700 billion bailout package that has been put in place to kick-start the economy back into growth.

Market Observers have said that the US government plan to buy shares in the big banks could lead to all sorts of problems with depositors choosing to go to the big banks that are guaranteed by the government rather than using a bank that did not need any government injection; this could be seen as an extreme unfair advantage.

Source: canadianpress

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