【Canada Lehuo.com lahoo.ca Jiang Lihe Summary] Keeping money in Canada bank is the habitual practice of most Canada people.
Among the 50 safest banks in the world, Maple Leaf Chinese Restaurant also has six banks on the list, which has long been considered one of the most stable financial systems. But every streak comes to an end. A former Canada banking regulator urged Canadian policymakers to prepare for the day when financial institutions collapse while they still have the capacity to do so.
图自:Better Dwelling October 11, 2024
In a new report from CD Howe, former OSFI managers urged Canada to modernize its banking crisis response and take a more cautious approach. Failure to do so could deal a major blow to Canada's financial stability, leading to a range of problems, from bank runs to the complete collapse of financial institutions.
While this may sound unlikely, it comes on the heels of the latest wave of supposedly impregnable global financial institutions failing in a matter of months. Worries are not unfounded.
"Bank of Canada has a good track record, but risks happen quickly"
The Canada banking system is deservedly known as one of the most resilient banking systems in the world. Unfortunately, over the past few years, many prominent global financial institutions have suddenly collapsed within a few weeks. Last year, for example, mid-sized regional financial institutions across the United States, such as Silicon Valley Bank, collapsed. Moreover, last year's shocking bankruptcy of Credit Switzerland led to the Switzerland government's merger with UBS of the company and its $1.3 trillion Switzerland franc assets under management. All of this confirms what the financial sector says "risks happen quickly".
Mark Zelmer, a senior fellow at C.D. Howe and former deputy head of OSFI, the banking regulator of Canada, stressed: "While Canada has not had a major bankruptcy for many years, it is better to be prepared for possible problems when the situation is calm, rather than in the most intense moments." ”
Canada's banks may not have any obvious problems, but that doesn't mean they don't exist, especially now that global banking trade is becoming more interconnected.
"There are emerging trends that suggest that our current prudential regulatory framework, which is focused on preventing bank failures, may not be sustainable," Zelmer explained. We have to think about what preventive measures can be taken to manage the systemic risk of bank runs. ”
Seeing this, a friend said that as ordinary people, it is best for us to save money "remember to deposit 100,000 yuan in a bank"...
Even, "to be precise, one type of bank account can be up to 100,000". In the unlikely event that a certain bank suddenly fails, it can also reduce losses...
Some netizens also ridiculed that the bank "doesn't have to repay the loan if it fails, right"?
That's a lot to think about.
Canada need to be more risk-aware
The member-funded CDIC ensures timely repayment of the insured deposits in the event of a bank failure.
However, since its inception in the late '60s, the CDIC has only overseen 43 bankruptcies, the last of which was in 1996. There is no loss of any insured funds. But this system has not been tested for nearly a quarter of a century.
A record set! TD Bank was heavily fined 3 billion and its stock price plummeted
Just recently, TD Bank (TD Canada Trust) and United States authorities reached a settlement that will pay a $3 billion settlement!
TD Bank has been fined a hefty amount, including $1.3 billion, for failing to effectively monitor suspicious money laundering charges in customer accounts.
Picture from: CBC
The $3 billion fine will go to the United States Treasury Department's Financial Crimes Enforcement Network. At the same time, it is also a record fine in the bank's history.
The Office of the Comptroller of the Currency (OCC) of the United States said Oct. 10 that as part of the settlement, TD Bank will be constrained by business growth and will be independently monitored over the next three years to ensure its anti-money laundering measures are effectively implemented.
This is undoubtedly a major blow to TD Bank. In midday trading on Thursday, TD Bank shares fell more than 3%.
TD also became the largest bank in United States history to admit guilt.
Previously, HSBC had also suffered the same high fine before withdrawing from the Canada market.