The Bank of Canada is ready to defend Canadian banks from a global financial meltdown if the current banking crisis in the U.S. and Europe spills into Canada, but the central bank does not think they will have to step in.
Speaking on Wednesday at the National Bank Financial Services Conference, Bank of Canada deputy governor Toni Gravelle declared that the bank was “ready to act in the event of severe market-wide stress and provide liquidity support to the financial system.”
He specifically referred to the near-collapse of the British pension system last September following disruptive tax cuts by then Prime Minister Liz Truss, and said the
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