SVB’s woes did prompt Canada’s bank regulator to take temporary control of its operations here, but those were relatively inconsequential, run out of a single office on Bay Street.The answer is not that Canada has better, more competent bankers or superior regulators.
That policy path was a conscious approach to managing risks inherent to banking and was entrenched in the 1920s after 50 years of disappointment with smaller, regional banks. It was deviated from briefly in the 1970s with the creation of two Western Canadian-based banks , two tiny institutions whose failure in 1985 reinforced the policy path taken in the 1920s.Article content
Donald Trump demonstrated this reality in 2018 when he changed U.S. bank rules and reduced the regulatory scrutiny of banks such as SVB. Maxine Waters, a high-ranking Democrat and former Chair of the U.S. House Financial Services Committee, assured viewers on U.S. television Monday that support for regional and community banks would continue because, “We don’t want to be at the mercy of four or five big banks.
Canadians (and Americans) should read this piece. An instructive read.
Canada has a few banks 🏦 that controls the whole Canada . Monopoly is what keeping them alive!
Canadian banking is a de facto monopoly.
Yeah, but also, when the government started seizing bank accounts of the truckers, there was an online blackout which effectively prevented a run. There was no run because there couldn't be.