John Turley-Ewart: Canada doesn't have bank failures because we learned our lesson 100 years ago

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.

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John Turley-Ewart: Canada doesn't have bank failures because we learned our lesson 100 years agoSilicon Valley Bank\u0027s collapse adds to the 562 bank failures the U.S. has seen since 2001. In Canada there have been zero. Find out more 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. Canadian banking is a de facto monopoly.
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John Turley-Ewart: Canada doesn't have bank failures because we learned our lesson 100 years agoSilicon Valley Bank\u0027s collapse adds to the 562 bank failures the U.S. has seen since 2001. In Canada there have been zero. Find out more
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