Finance committee  Minister Flaherty is absolutely right; we are not an island. There's probably no other country in the world better placed to resist or deal with pressures we see elsewhere in the world, but we will not be immune. You asked specifically about the fiscal cliff. I remain an optimist.

Finance committee  First, let's put these things into a little bit of context. There are a lot of dangers out there, and of course, probably the poster child for real problems that will take a long time to solve is Europe; you're absolutely right. Remember, even if China is slower, it's still growing at about 7.5%.

Finance committee  It's important to remember that.... I am sorry, but I am going to have to answer in English. It's important to remember, when you look at household debt, that the majority of that debt is mortgages. Credit cards are really only about 5% or 6%. Auto loans are growing, but I think that was probably a function of the demand for auto being suppressed over the recession, and we're probably seeing people just trying to fulfill that demand.

Finance committee  That's a very big topic, and it's a really good question. I thank you for that. First of all, it's important to remember what capital is there for. Banks have to have capital, because capital supports lending, but capital also allows you to manage your risk. It acts as a shock absorber.

Finance committee  I'll be very quick. You mentioned the United States. The housing situation, the residential mortgage market situation in Canada, is very different than in the United States, very structurally different. I think comparisons between the two have to be very careful. We're all concerned that we achieve a soft landing, not a hard landing.

Finance committee  I think it's a couple of things. I'll be very brief. When we talk about a competitive tax rate, it's very important to recognize that when I say that and when the government says that, it's for businesses across the country. We are in a very competitive world in which people scan the competitive environment and make decisions as to where to invest.

Finance committee  There's no question that every company will make its own decision. Every board will make its own decision. Some pay them back in dividends. We've seen that happening. Some will give it back to shareholders, which then goes into pension funds. Some of that will be decisions to invest.

Finance committee  To make the PRPP successful, provincial governments must adopt companion legislation to enable the PRPP to cover provincially regulated businesses across the country. We encourage the federal government to continue working cooperatively with the provinces on the PRPP model. Finally, Canada's productivity I think is closely tied to the efficiency and effectiveness of its financial system, including the importance of having a streamlined national regulatory regime applicable across the country.

Finance committee  Thank you, Chairman. The CBA is pleased to participate in the committee's pre-budget consultations in preparation for Budget 2013. As many of you know, the CBA represents 54 banks in this country and their 274,000 employees across Canada. Our banks are playing an important role in helping families, businesses and communities across Canada to weather the economic turbulence that still persists around the globe.

Finance committee  Thank you for the question. I apologize, but I am going to answer you in English. I would say our banks have been.... If you look at the track record over the last 10 years, 15 years, 20 years, I think it's very clear that our banks—while they have been interested in expanding and have done so—have done it in a very cautious way.

Finance committee  Is your question for Mr. Swedlove?

Finance committee  Unfortunately, sir, I don't have a sense of that, but on the 10%, I would say that's a very large transaction. Ten percent of an acquiring bank's assets...that's very large.

Finance committee  Well, that was back in the 1980s. I would hesitate to give you an answer, but it would be on that scale.

Finance committee  It would be on that scale.

Finance committee  Well, when we first read it, I would say.... It strikes us that this is a reversion to the status quo ante: the minister had the authority back in the 1990s. It was delegated to OSFI. OSFI was always involved, and the process under OSFI worked very well, but the world has changed.