Canada says US, Europe banking systems need repair

OTTAWA, March 13 (Reuters) - Canadian Finance Minister Jim Flaherty said on Friday the United States and Europe need to segregate bad debt from banks' balance sheets to fix the global financial system.

"On the issue of fixing the banks ... it is imperative that the Americans go ahead with their stress-test plan and that will start to show some results in the month of April," he told BNN television in an interview from the G20 finance ministers' meeting in Horsham, England.

"We need that copied elsewhere, some of the European banks have challenges with respect to toxic assets as well," he said.

Flaherty also said Canadians should expect more job losses, reacting to a report on Friday that showed a bigger than expected employment decline in February. (Reporting by Louise Egan; Editing by Peter Galloway)