Canadian government moves to address funding pressures at banks

In a move intended to “make loans more available and more affordable for Canadians and businesses,” Finance Minister Jim Flaherty announced today that the Canadian government would purchase $25 billion dollars worth of mortgages already insured by Canada Mortgage and Housing Corporation.

Flahrety insists that not a single Canadian bank is at risk of failing but that liquidity is the primary issue threatening the unimpeded flow of credit for Canadians.

“It is important to underline that Canada’s banks and other financial institutions are sound, well capitalized and less leveraged than their international peers,” he said.

Read the Globe and Mail story here

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