According to a survey conducted by the World Economic Forum, Canada has the best banking structure in the world. The overview of Canada as financial jurisdiction was showed that the next positions after this jurisdiction are occupied by Sweden, Luxembourg and Australia. Canada was given 6.8 points out of 7 possible, thus, it became at the top of the list. The United States ranked 40th as it has gone through many major bankruptcies and crises in the past.
According to the data of the same Economic form, the specified report is based on the conclusions made by the top management. The executives assigned a rating from 1.0 to banking institutions to 7.0, ranging from an insolvent bank that needs government assistance to institutions with a sound balance sheet. The release of this report was driven by the fact that more central banking institutions located in the United States, Canada, Europe, China, Sweden and Switzerland lowered their interest rates in order to limit panic selling in the market. In addition, it was an attempt to restore customer confidence in banking systems, which had been largely undermined.
The main reason behind the success of banking institutions in Canada is conservative lending to clients and reliable financing. Banks in Canada are adopting stricter policies regarding the amount of loans issued to consumers when compared with international banks. For Tier 1 capital, consumers are allocated a minimum of 7 percent, while for commercial banking in the United States it is 6 percent.
Canadian regulators have resisted pressure from banking executives to ease lending restrictions, and the economy has been getting better and better at the same time. The economy was booming. Banks have imposed stricter measures for lending to consumers, which has helped to cope with the global crisis better. In addition, most of the banks in Canada are reluctant to issue loans to those who want to buy a home and have a low credit rating. This, in turn, removes the risk of default. In the United States, however, independent brokers compete with commercial banks to attract borrowers. This leads to increased risks.
For instance, Switzerland ranks and is a notable contender. In general, this jurisdiction is always in the first place in the field of private banking services. Switzerland’s banking confidentiality principles, which were once top secret, are now under particular pressure as they require more disclosure on terrorist financing and illicit funds.
Also we would like to attract your attention for money services business institutions which are in great demand of business developers now. If you like to get more information about MSBs, do not hesitate to contact our specialists.
For details of overview of Canada regulations: Julia.firstname.lastname@example.org / Telegram @juliazhil
Please feel free to join our telegram channel in order to keep updated for the new offers and ready-made companies for sale.
Every week we have new jurisdiction to offer a ready-made turn-key solution! We work worldwide.
Please contact us to get more information regarding companies on sale.
You can also see our offers in category ready-made companies and licenses for sale.
We have multiple options worldwide!
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.