Marcello asked:


I am not speaking ideologically as I know that a general opposition to socialism of any kind makes sense - I am talking specifically about the practicality of it. Right now we have a huge meltdown that Canada seems to have fully averted as their banking system did not act with such ridiculous recklessness.

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No Responses to “What are advantages to having the banking system private as oppose to Canada where banks are government run?”

1. Nick Z on August 24th, 2010 9:07 am

   Perhaps the Canadian government has better oversight and regulation for Canadian banks. But Canadian banks are private corporations just like any other.

   But I don’t think it’s fair to give all the credit to the Canadian government. Perhaps Canadian banks have better managers who care about their banks and don’t try to enrich themselves with multi-million dollar bonuses.

   The US government was supposed to be regulating US banks too. But due to repeated deregulations, many US banks ended up doing whatever they wanted to. Which in the end turned out to be a bad thing. Because the top managers ended up as multi-millionaires. While the common shareholders ended up with nothing. And US taxpayers ended up being responsible for the huge debts these banks have run up.

2. edna t on August 26th, 2010 12:56 am

   an individual’s privacy is nil,,,private records pertaining to personal and
   business finance are no longer inviolate…..everything is open to scrutiny and handling
   if a bank has proper regulations in order, very few discrepancies should ever occur because proper bank procedures insure the proper record and use of monies

3. sasil85 on August 28th, 2010 10:06 am

   All I know is Canada banking system ranked number 1 in the world and is ranked number 1 as safest. USA is ranked 40th.

4. dinga444 on August 29th, 2010 10:38 am

   I am a Canadian.

   This is a flawed question because I can assure you that none of our banks are run by the government. Most of them, including the 5 majors (Royal Bank, TD Canada Trust, BMO, Scotia and CIBC) are publicly listed and traded companies.

   I can offer three reasons why our banks are more stable: 1) because they have to comply with better regulations, 2) they’re gouging Canadians with some of the highest user fees in the world meaning they’re more profitable, and 3) our government didn’t encourage banks to give people earning minimun wage $500,000 mortgages.