Do You Think Canada has the World’s best banking system?

According to a recent study performed by the World Economic Forum, Canada has the soundest banking system in the World. The United States was ranked 40^th and Britain who was once a world leader, has dropped to 44^th. The study measured the solvency of the banking systems in 134 different countries.

The World Economic Forum’s Global Competitiveness Report based its findings on opinions of executives, and handed banks a score between 1.0 (insolvent and possibly requiring a government bailout) and 7.0 (healthy, with sound balance sheets).  Canadian banks received 6.8, just ahead of Sweden (6.7), Luxembourg (6.7), Australia (6.7) and Denmark (6.7).    UK banks collectively scored 6.0, narrowly behind the United States, Germany and Botswana, all with 6.1. France, in 19th place, scored 6.5 for soundness, while Switzerland’s banking system scored the same in 16th place, as did Singapore (13th).

The ranking index was released as central banks in Europe, the United States, China, Canada, Sweden and Switzerland slashed interest rates in a bid to end the panic selling on markets and restore trust in the shaken banking system.  The Netherlands (6.7), Belgium (6.6), New Zealand (6.6), Malta (6.6) rounded out the WEF’s banking top 10 with Ireland, whose government unilaterally pledged last week to guarantee personal and corporate deposits at its six major banks.

Understanding Canada’s position in the world; is Canada prepared for an economic downturn? Let us know your thoughts – POST A BLOG REPLY (see below).

SOURCE: World Economic Forum Global Competitiveness Report 2008-2009