Bank levy talks a distraction -Canada’s Carney

* Capital, liquidity standards key reform issues

* Bank levy discussion a distraction

By Ka Yan Ng

OTTAWA, April 22 (BestGrowthStock) – Talks about a global bank levy
are a “distraction” from the other issues such as capital and
liquidity reforms and the world economic recovery, Bank of
Canada Governor Mark Carney said on Thursday.

“It is important to focus on the highest value added or the
highest return elements of reform, which for us is more and
better capital, better liquidity standards and better
resolution mechanisms for institutions that fail,” Carney told
reporters.

“We see the bank levy discussion as a distraction from that
core agenda.”

The comments are in line with Ottawa’s long-standing position that a bank tax is not appropriate for Canada since
its financial sector did not need bailouts during the global
financial crisis.

On Wednesday, Finance Minister Jim Flaherty bluntly
rejected the idea of a harmonized global bank levy, saying
Ottawa would not accept what he called a punitive tax on the
country’s banking sector. [ID:nN21183301]

Canada’s finance minister and central bank governor will
join their counterparts from the Group of 20 leading developed
and developing nations in Washington on Friday at a meeting
that will focus on financial reforms. Ahead of the meeting, the
International Monetary Fund has proposed two taxes on banks to
pay for any future bailouts. See: TAKE A LOOK [ID:nN14251988]

While the process on capital and liquidity standards will
not be decided this week, a collective view on the basics
should be resolved in time for the Korean summit in November,
Carney said.

“There is a need for unanimity on the basics of bank
capital standards and the basics of bank liquidity standards,”
he said.

Any time not spent talking about a bank tax will be used to
talk about the global outlook, Carney said.
Stock Market Money

(Additional reporting by Toronto treasury team; editing by Rob
Wilson)

Bank levy talks a distraction -Canada’s Carney