Even in Canada, public funding has been considerable. The $ billion in Insured Mortgage Purchase Program (IMPP) funding for banks represents 4.3 per cent of GDP. Bank of Canada extraordinary liquidity facilities have been smaller than elsewhere but they still peaked at 3 per cent of GDP.
While government guarantees have not been used, it is noteworthy that Canadian bank term funding is running at less than 30 per cent of normal levels, largely as a result of the use of IMPP and the Bank’s facilities. Initially, the crisis has also had a major impact on the competitive environment for financial institutions.