Sept. 29 (Bloomberg) -- The Group of 20 nations found a “good balance” on banking regulations, Bank of Nova Scotia Chief Executive Officer Richard Waugh said.

The G-20 leaders pledged to strengthen international financial regulations in a communiqué from last week’s meeting in Pittsburgh. The G-20 also moved forward with efforts to overhaul financial rules, rein in banker pay and require banks to hold more capital in reserve against potential losses.

“It looks like they found a good balance,” Waugh, 61, said today after a Toronto press conference. “They’re leaving it up to the central banks and the regulators and hopefully collaboration with the private sector to get it right.”

Re-regulating the financial industry is significant for all banks, Waugh said. “We can all live with it and if we do it with the right balance, it will also be good for our economies.”

Canada has retained its position as home to the world’s soundest banks, the World Economic Forum said on Sept. 8. Canada ranked first for the second straight year for the indictor by the Geneva-based organization.

Waugh said the G-20 proposals move toward the “gold standard” Canadian model. That may give Canadian lenders an advantage over U.S. and European banks, he said.

“We haven’t had a level playing field in the short run because of all the subsidies and the help that the other banks have gotten,” Waugh said. “As we move into the new world, this will now play to our advantage.”

To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.net

Last Updated: September 29, 2009 13:28 EDT