CANADA BANK DEREGULATION TALKS MAKE PROGRESS
Canada's Minister of State for Finance,
Tom Hockin, said substantial progress was made today with his
provincial counterparts on deregulation of the country's
financial system, but stumbling blocks remain.
    "We were able to make considerable headway," Hockin told
reporters following a six-hour meeting with provincial
ministers responsible for financial institutions.
    Hockin said he was optimistic an agreement could be reached
by the June 30 deadline to bring the sweeping new system in
place, but he was willing to extend it if necessary.
    Under the proposed system the traditional barriers
separating the banking, securities and life insurance sectors
will be removed and, for the first time, cross ownership will
be allowed.
    But a jurisdictional dispute over who regulates the new
institutions has broken out between the provinces and Ottawa.
The provinces have traditionally had authority over securities
while Ottawa held sway over banking.
    Hockin, without giving details, said under the new system
the regulatory system would have to be harmonized to "insure
orderly and efficient markets."
    Hockin said he made it clear to the provinces that Ottawa
has jurisdiction in any international accords in the financial
sector and would not allow any intrusion by the provinces in
that area.
    Hockin said the ministers did not have time to go into
detail on all the issues and the talks would continue the rest
of this week at the official level.
                 
 Reuter
