Canada09 Jul 2012
This Asset Finance International Country Survey provides a balanced view of the asset finance and leasing market in Canada. It covers the background economic conditions and the specific characteristics of the Canadian leasing industry; the challenges and opportunities; provincial differences; and reviews of accounting practice and tax issues; with comment on the market and its outlook from key industry figures.
Although Canada could no more avoid the financial crisis of 2008-09 than it could sever links with the US financial markets, Canada’s banks emerged from that period relatively strongly, owing to the banking sector’s tradition of conservative lending practices and strong capitalisation. This was aided by the fact that, prior to the crisis, Canada had already put into place various fiscal austerity measures, the adoption of inflation targets, separation of investment banking from traditional banking activities and the development of a strong regulatory system.
According to Minister of Finance Jim Flaherty: “Canada’s economic performance over the recession and recovery has been solid relative to our peer countries. This reflects Canada’s sound economic, fiscal and financial sector fundamentals, along with the significant and timely support provided under Canada’s Economic Action Plan. As a result, Canada has posted the strongest growth in employment in the G7 during the recovery.”
Canada has long played a central role on the world economic stage, being one of the founder members of the G7 group of nations. It is the world’s second largest country by area and the largest country having a single border with another country. That country is of course the US, and the two are necessarily closely linked, not least economically.