Overwhelming majority of Canadians against global tax on banks in Canada

For Immediate Release

TORONTO, ON, May 31, 2010 – The International Monetary Fund’s (IMF) push to have Canada participate in a punitive global bank tax has been soundly rejected by the vast majority of Canadians. According to a new poll conducted by The Strategic Counsel more than three-quarters of Canadians (76 per cent) report that Canada’s banks should not be subject to the proposed global bank tax as it unfairly punishes Canadian banks that performed well and remained stable throughout the financial crisis. 

Furthermore, more than eight-in-ten Canadians (85 per cent) agree that Canada’s banks should not be required to pay for the mistakes of banks in the U.S. and Europe that led to the recent financial crisis.

“These results show that Canadians strongly support the government’s move to reject an unfair tax on Canada’s financial institutions,” said Nancy Hughes Anthony, President and Chief Executive Officer, Canadian Bankers Association. “We hope that the upcoming G20 meeting will focus on developing effective, even-handed regulations that will prevent a repeat of the global financial crisis.”

The Strategic Counsel survey also revealed that Canadians are concerned about the impact of new international banking regulations on banks in Canada. Eight-in-ten Canadians (80 per cent) agree with the view that Canada’s banks were a major exception when it came to the problems in the financial sector over the last year. As a result, Canada’s banks should not be put at a disadvantage when it comes to new regulation. 

“Those who are in favour of a bank tax see this as a way to recoup the costs of bank bailouts in other countries and curb speculative behaviour.  It doesn't seem fair to make the customers and shareholders of financial institutions throughout the world fund the bailouts of a handful of financial institutions,” said Ms. Hughes Anthony. “What is important is stability in the financial sector and good risk management, which you do not get by imposing a tax on financial institutions.” 

When asked about their impressions of Canada’s banks, 78 per cent of Canadians registered favourable impressions.  As well, more than eight-in-ten (81 per cent) of Canadians believe that Canada’s banks are more stable and secure compared to other banks around the world.

Survey Methodology 

The survey findings are based on a national proportionate sample of 1200 adult Canadians 18 years or older who were interviewed by telephone between May 5 and May 12, 2010. The results are accurate within +/-2.9 percentage points, 19 times out of 20. 

The Canadian Bankers Association works on behalf of 50 domestic banks, foreign bank subsidiaries and foreign bank branches operating in Canada and their 263,400 employees. The CBA advocates for effective public policies that contribute to a sound, successful banking system that benefits Canadians and Canada's economy. The Association also promotes financial literacy to help Canadians make informed financial decisions. www.cba.ca.

- 30 -

For more information: 
Andrew Addison, Canadian Bankers Association
Tel: (416) 362-6093, ext. 220 
Cell: (416) 587-7733 
E-mail: aaddison@cba.ca