It's time Canadians separated banking fiction from reality FIN Edition

• Published in: Toronto star
• Main Author: J A. Gordon Bell Special to The Star
• Format: Newspaper Article
• Language: English
• Published: Toronto, Ont Torstar Syndication Services, a Division of Toronto Star Newspapers Limited 19.08.1985
• Subjects: McDougall, Barbara
• ISSN: 0319-0781

The fact that the large banks have been singled out for unequal treatment in the [Barbara McDougall] paper is but one further manifestation of an anti-bank bias which is founded on emotion, not facts. And while bias and emotion are potential political mixtures, they are disastrous recipes for public policy. It's time Canadians separated myth from reality so that the debate on the future of our financial institutions can focus on real issues. If this is not done, the ultimate losers will be the Canadian people. Finally, take efficiency: Do Canadian banks provide value for money? The Commons committee concluded that they do. Walter Shipley, the chairman of Chemical Bank in the U.S., recently said: "If (U.S.) banks could consolidate and cut costs to reach the same ratio of operating costs to assets as Canadian banks have achieved, they would save some $21 billion." In the face of so much evidence, Canadians should ask themselves what goals of public policy are served by a proposal to exclude large banks from the new opportunities raised by the McDougall paper? Certainly not greater availability of financial services for Canadians. Certainly not a more competitive system. Certainly not a more dynamic and innovative financial industry.