The release of new guidelines on large bank mergers in the Canadian financial sector won’t happen until next year at the earliest, Minister of Finance Ralph Goodale said today.

The paper, which Goodale had promised to issue by the end of 2005, would have outlined conditions under which mergers could have taken place.

“Earlier this summer, I wrote to the finance critics in the three opposition parties, asking whether we can proceed in a serious fashion to deal with the issue of large-scale bank mergers,” Goodale said in a written statement.

“After reviewing the responses, I do not believe it would be appropriate to bring forward guidelines on such an important issue in this environment, where it runs the risk of being politicized.”

The decision halts all chance of mergers ahead of the next federal election.

“In the meantime, the Government will proceed with its review of Canada’s existing legislation that governs the financial services sector,” Goodale sai.

He added the review will deliver tangible improvements for consumer protection, and streamline regulation.