MARKHAM, Ont. — Moves made by the Bank of Canada to help offset the global credit crisis received a vote of confidence from Finance Minister Jim Flaherty on Sunday.

The minister said he's satisfied with decisions so far, noting that the strong Canadian economy is helping battle the financial storm that has swept through global credit markets.

"I'm comfortable in the economic management that we've shown in Canada -- including during the current situation that we're facing with the credit crunch and the role that Finance and the Bank of Canada has played,'' he said.

The finance minister spoke at the annual meeting of the Canadian Chamber of Commerce, in Markham, Ont., a community just north of Toronto. The chamber is the country's biggest business lobby group with 170,000 members.

Flaherty told a news conference afterwards that the government continues to monitor the credit crisis and that Canadians should maintain a "realistic'' perspective.

"We've had greater financial growth than expected in terms of GDP growth in the first and second quarters in Canada,'' he said, noting that the government continues to monitor developments in the credit markets.

"We have some tools that we can use. The best news in Canada is that we have strong economic fundamentals. The government is in a position of strength.''

Earlier this week, some of the chief executives of Canada's big banks said they expect the global credit turmoil to last until next spring at least. Flaherty agreed.

"We will have to weather that storm in Canada,'' he said. "All of our governments are running surpluses in Canada -- provincial, territorial and federal -- so that we are in a strong position.''

Flaherty said in his speech that solid job growth, government budget surpluses and falling debt burden, as well as the country's role as an emerging energy superpower, have helped ease the economic stresses caused by the credit crunch.

While part of Canada's asset-backed commercial paper market -- a system of short-term corporate lending --  has been frozen,  the Canadian financial system has been generally functioning normally. A plan has been proposed to freeze and eventually restructure the $35 billion market for asset-backed commercial paper that is not sponsored by the big banks.

The Bank of Canada and other central banks around the world have pumped billions of dollars into the financial system in recent weeks to help ease the credit turmoil. Nevertheless, troubles persist.    In recent days, hundreds of customers lined up outside branches of a British mortgage bank, Northern Rock, to withdraw their savings after the bank asked for an emergency Bank of England loan.

The British bank made the request because it relies heavily on wholesale money markets for cash, and had been unable to borrow the amounts it needed from other banks since money markets choked up last month. That was caused, in part, by U.S. banks making mortgage loans to Americans with poor credit histories.    The fallout from that lending has led to rising foreclosures in the U.S. housing market, the near collapse of some U.S. mortgage lenders and the seizing up of financial markets linked to risky mortgage lending.

The main problem appears to be that hedge funds, investors and other financial players can't properly value the complex, poor-quality financial products they hold that are linked to the U.S. sub-prime mortgage market.

Flaherty met with the CEOs of the big Canadian banks a few days ago and later praised the plan proposed by the Caisse de depot for a 60-day freeze that will help financial companies properly value the asset-backed securities they hold.

As well, Bank of Canada governor David Dodge said the private sector needs to take the initiative to work out the problems in the credit squeeze and not expect central banks to bail them out.

"The guiding principle must be caveat emptor (buyer beware),'' Dodge told a business group in London England.

Flaherty also said that Canada faces some economic challenges, including the rising Canadian dollar and its impact on the manufacturing sector, especially in Ontario and Quebec.

"We're seeing a lot of resilience in Canadian manufacturing businesses who have, after all, been facing this appreciation of the Canadian dollar issue for four years or more now,'' he said.

"To be successful in manufacturing, we have to be more productive, more technologically sophisticated, so we can be more competitive. We can't base our economy on low-paying jobs in manufacturing. We have to move up the scale.''

Flaherty said the country requires better jobs, a higher standard of living, and greater opportunity for Canadians to learn, earn and invest in their future.

 The finance minister has faced scrutiny from Bay Street over his decision to tax income trusts, as well as other policies. He said it comes with the job.

"When you are minister of finance in Canada, you have to make some decisions that are not going to be popular with certain sections of the business community because, after all, you represent the whole country,'' he said. "I would worry if I had a very, very high popularity rating with one sector of the economy or the other.''