OTTAWA (Reuters) - The global credit crunch is starting to hamper Canadian banks' ability to raise longer-term funds but they remain well-capitalized and able to withstand big shocks, Finance Minister Jim Flaherty said on Monday.
In a statement in apparent reaction to the drop on Canadian and world stock markets, Flaherty said Canada's mortgage system was sound and did not have the large subprime sector that has afflicted the United States.
"Nonetheless, Canada's financial system is not immune to the ongoing turmoil in global credit markets," he said. "The government of Canada stands ready to take whatever actions may be necessary to protect the stability of the Canadian financial sector."
Reporting by Randall Palmer; editing by Rob Wilson