Bank of Canada says banks to see lower returns

Fri Nov 5, 2010 4:41pm EDT
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HALIFAX, Nova Scotia (Reuters) - The financial industry will make lower returns after global banking reforms are put in place, Bank of Canada Governor Mark Carney said on Friday.

Carney said G20 policy makers had already asked banks to adopt stricter rules on capital and liquidity, and said "we're going to do more of it."

"We're going to change the way it functions. They're going to make lower returns. It's going to be safer," Carney said in a panel discussion at a security forum in the East Coast city of Halifax.

(Reporting by Richard Woodbury; writing by Louise Egan; editing by Rob Wilson)