The fall of Silicon Valley Bank and Signature Bank, as well as the latest distress at Credit Suisse, has investors questioning the stability of the global banking industry, and that sentiment has caused the leading Canadian banks to lose $57 billion in market capitalization over past two weeks, the DBRS report revealed on Monday. Despite this financial blow, it stated that Canada’s banking sector is well positioned to handle the market chaos, and absorb further losses if necessary.
The report also revealed that a run on Canadian banks is somewhat less likely to happen compared to their counterparts in the United States. This is because there are only 85 banks in Canada that have deposit protection compared to the 4,700 U.S. banks, DBRS Morningstar stated. In addition, Canadian banks are less exposed to riskier investments within the tech and oil and gas sectors, compared to American banks, it added.
During the pandemic, the banks experienced a period of outsized deposit growth, and some of these deposits were invested in low-credit-risk vehicles, the report revealed. As interest rates have climbed, Canadian bank’s investment portfolios have seen an increase in unrealized losses.
So where did the billions go .. individual investors didn't have time to react... mega billions gone.... where ?
I never bought bank stocks specially since 2018 because as liberal came into power financial health of canada became worst
Why some banks not increasing payment and extending amortization period to 35 years which was never happened it means they are scared and trying to avoid crash but it’s not possible
It’s ok you can hose more from your customers so don’t start wining just yet about your hundreds of billions in profits not quite being enough this month ya bunch of…..
companies have no control over stock values so this is bad journalism by somebody who does understand the stock market
Oh well
Meanwhile BoC which caused this is spending and 🤣🤣🤣 4 classes in Canada! Rich, Government job Rich, Working Poor and Poor!!!