Mr. Speaker, it was surprising to have the NDP put forth this issue today. I imagine there was more than one reason to start talking about bank mergers and I guess we will find that out as the day goes by.
It is very easy to stand here, as the NDP does in so many cases, and tell everyone that the sky is about to fall if those big, bad banks have a merger. There are a couple of points he made with which I really must take issue.
The banks, operating under the charter, of course have an obligation to the population of Canada, like the hon. member said. They also have an obligation to the Canadian economy, and it is absolutely critical that our banks remain as strong as they possibly can to support our economy.
Over the last number of years, because of mergers around the world, our Canadian banks have lost their standings from an asset base and the ability to take advantage of opportunities in the global market. While other banks around the world have grown in size through mergers and acquisitions, our banks have not had that opportunity. They are getting left behind and have been unable to participate in financing opportunities in the global marketplace. That has a direct bearing on the ability of banks to solidify and increase their strength right here in Canada. It is a trickle-down effect which is certainly a reality.
The member talked about the difference between interest rates here and in the U.S. That is true, our rates are somewhat higher, but the interest rates are at the lowest point they have been in many years. Many Canadians are taking advantage of the low mortgage rates, for example, that are offered by our banks. They are able to buy houses a lot easier than they could before. They are able to buy other consumer products, large ticket items like cars and recreational items like boats.
The banks were here and made presentations before the committee. They made commitments. Where does the member want to go with this? The banks are waiting for a response from the government which will be forthcoming. They have said they are ready to do whatever it takes to facilitate these mergers.