Despite Canada’s sound financial system and solid fiscal position, it was seriously affected by the financial crisis and suffered proportionately almost as much as the U.S. economy did over the 2008–09 period, owing to its strong economic and financial links to the United States (Chart 1).
There is considerable divergence in the understanding and practice of corporate governance in general, and in respect of banks, in particular, but there is also an increasing tendency towards convergence. The cultural context may be difficult to capture but the legal, institutional and attitudinal contexts do vary perceptibly across countries.