Canada’s bank system is safe from widespread failure, but a recession coupled with high unemployment rates remains likely, expert witnesses told the House of Commons standing committee on finance March 23.
Representatives from BMO and Desjardins Group answered MP questions about U.S. banking volatility and whether Canada’s banking system is in any danger.
Canada’s banks have “consistently demonstrated” resiliency in the face of economic turmoil, said Jimmy Jean, vice president and chief economist of the Desjardins Group. He gave the example of the housing market crash of 2008.
The United States has some 7,000 banks compared to only about seven major banks in Canada, Jean said. And the Canadian banks are more tightly regulated, he said….