Canada’s Flaherty digs in heels on bank tax issue

TORONTO, April 21 (BestGrowthStock) – Canadian Finance Minister Jim
Flaherty hammered home his message to the G20 again on
Wednesday, saying a harmonized global bank levy is a bad idea
for his country.

He said a systemic risk levy on financial institutions
would not be appropriate for all countries, and could weaken
banks’ ability to absorb losses. He also said it could increase
moral hazard by encouraging banks to take excessive risks.

“Let me make that even clearer: Canada will not go down the
path of excessive, arbitrary or punitive regulation of its
financial sector,” he said in the prepared text of a speech.
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(Reporting by Jennifer Kwan; Writing by Louise Egan; editing
by Peter Galloway)

Canada’s Flaherty digs in heels on bank tax issue