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Presenting The Worst-Capitalized Central Bank In The West (Hint: Not The Fed)
Submitted by Simon Black via Sovereign Man blog,
As the world’s top central bankers gathered at their annual jamboree recently, the governor of Bank of Canada, Stephen Poloz, undoubtedly received envious comments from his fellow money magicians for Canada’s perceived status as a global financial safe haven.
This newly found perception was perhaps best exemplified during a Bloomberg interview, when the CEO of RBC Wealth Management – the biggest financial institution in Canada said that “Canada is what Switzerland was 20 years ago, and the banks in Canada are what Swiss banks were 20 years ago.”
This is the new flavor of Kool-Aid. Canada is seen as the new banking safe haven and an “island of safety and stability” because of its perceived sound fiscal position, commodity wealth and solid economic performance.
Now, anytime I see central bankers slapping each other on the back, I’m going to be skeptical. But here at Sovereign Man, our conclusions are all data driven… so we dove into the numbers.
First, the Big Daddy himself—Canada’s central bank.
Any strong, healthy banking system requires a central bank with a pristine balance sheet… specifically, substantial net equity as a percentage of assets.
So how strong is the balance sheet for Banque du Canada? Not very.
As it turns out, Banque du Canada is actually the most pitifully capitalized central bank in the western world. They’re in such bad shape they actually make the Fed look healthy.
Hong Kong’s Monetary Authority Exchange Fund is a good example of a strong balance sheet; their latest figures as of 30 June show a whopping capital reserve equal to nearly 22% of total assets.
This is a massive margin of safety for the central bank.
The US Federal Reserve, on the other hand, shows a capital reserve of just 1.27%. And Canada? A tiny 0.47%… as in less than one half of one percent.
This isn’t safety and stability. It’s a rounding error.
Moreover, Canada also has ZERO reserve requirements for its banks; this means that Canadian banks are not obliged to hold any of their customers’ deposits.
So yes, it’s legally permissible for a Canadian bank to loan out 100% of its customers’ funds.
Not to worry, though. The Canadian Deposit Insurance Corporation (CDIC) is standing by to insure bank deposits up to $100,000.
But when you look at it closely, there isn’t much there for depositors at all. There’s roughly $646 billion of eligible deposits in the Canadian banking system. Yet the CDIC only has $2.8 billion in cash available to insure it all… a ratio of just 0.43%.
Even more troubling is that Canada has legislated an actual Cyprus-style confiscation of deposits in the event that Canadian banks deplete their capital.
Buried deep into the government’s Economic Action Plan 2013 is a provision that would implement a “bail-in” regime for “systemically important banks”.
This would legally allow the banks to tap into customer deposits if the banks get into trouble… something I don’t find particularly safe.
Last, the Canada myth really starts to become apparent when you look at the country’s gold reserves.
At the beginning of this century Canada held 46.19 tonnes of gold. Now they hold only 2.99 tonnes. That’s a whopping 93.5% decline in gold reserves in just over a decade!
In other words, Canada’s monetary leadership has made a conscious decision to reject real assets in favor of paper assets that can be conjured out of thin air.
They’ve managed to run their central bank into borderline insolvency.
It’s important to look at facts and not rely on sentiment.
To anyone who rationally looks at the data, the obvious conclusion is that Canada is certainly NOT the safe-haven it’s been built up to be.
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no reserves required
none
Gotta smoke, eh?
Mission Accomplished!
your move Stephy boy!
LOL K BYE
Oh, but Americans are Hoarding all that money! CNBC says so!
//sarc off
"Reserves? We ain't got not reserves. We don't need no reserves. I don't got to show you any steenkin' reserves!!!"
The funny thing about China's 22% capital reserves is that 3 trillion is in US bonds(dollars), Rot Roh Shaggy we got a problem, zoink!
So what happens to the Central Bank of Canada if it becomes "insolvent"?
"This newly found perception was perhaps best exemplified during a Bloomberg interview, when the CEO of RBC Wealth Management – the biggest financial institution in Canada said that “Canada is what Switzerland was 20 years ago, and the banks in Canada are what Swiss banks were 20 years ago.”
I use to work for RBC several years ago. I love how the top executives of RBC always make gratuitous comments without knowing a fucken thing about what they are talking about. They hire newbies and offer them $45K/year to manage 400 personal accounts in the branches. The salary is really crappy and the VP's say, "hey you work for the best bank in Canada & you should be privileged to work for us. The salary is not that important!!"
While these VP fuckers make $250K +++ per year, bonus and massive stock options. I say, FUCK OFF CAUSE YOU ARE TAKEN CARE OF & I GOT BILLS TO PAY!!!
You're right PHI their cheap fuckers, I worked for them at one point too. They work you like a slave too, and so highly leveraged. I used to fudge my sales numbers as they were nazi's for that as well.
Parliament can put through a bill creating money out of thin air to recapitalize the central bank or any of the banks. As long as this was replacing destroyed money, it maybe wouldn't be inflationary.
Parliment?
Its english parliment and their puppeteers that are pulling Canadas parliments strings.
Its theivery.
Ever hear of the Canadian Crown Corporations?
http://en.wikipedia.org/wiki/Crown_corporations_of_Canada
Check out what Canadians (and other commonwealths) own and what they are being drained of by the BOE and BIS.
RIPS
The Loonie will crash. The gold and silver priced in Loonies will explode. Capital will leave the country. THEN it gets interesting as the world stupidest real-estate market will then implode as interest rates rise. Just as a good fraction of Canadians look to retire. Compare RY, TD, or BMO to JPM or GS. Straight up for 2014. But... it's too early to short anything yet or to buy gold or silver. But, that could change any day.
So the facts don't fit the rhetoric? My tin foil hat detects that some tribal treachery is afoot.
What you should do is teleport back to 2007 and bet against the Canadian Housing market for the win!
you crazy.
Yeah, but Canada is financing all of those crack houses in Vancouver.
What could go wrong?
Canada produced such fine examples such as Justin Beiber and Mayor Rob Ford. So what if both are coke addicts. Just BTFLoonie, eh.
Fuck you Mark Carney, the first Rat to Jump Ship and Take-off Eh!
Ask any Canuck what they think of our banking system..."Canada is #1, we did not screw around like the American Banks"
Canucks still think our banks did not require a bailout back in 2008...duhhhh! Former finace minister admitted to it 5 years after telling the public that our banks were safe and did require assistance....Should have seen the tears when that cocksucker kicked the bucket 6 months after retiring...whaaa..whaaa..what a great politician they said...DUHHHHHH!
You should see the looks I get when I tell people their money will be taken just like in Cyprus, its already law!
They tell me to put on my tin-foil hat, and enjoy the hockey game...with that shleeple glazed over look...duhhhh!
Anyway.....FUCK YOU TWICE, Mark Carney, you cocksuckn' rat bastard!
Agreed and look at the regulators in Canada.... The primary ones OSC and BCSC....
Look at the small ball these guys go after...it's either penny stocks, insider tracking (usually on a non bell weather stock)...never addressed HFT, sat on hands after the bailout....stealing a living.....these people also need to be strung up..useful idiots the lot of them
Indeed. CIBC was bailed out around something like 1.5 times the worth of the entire bank.
It would have been cheaper for the taxpayer to simply let it die.
I'm pretty sure the bailouts came from the Fed though not from the BOC or the Canadian government and were supposedly "repiad in full" whatever that is supposed to mean these days...
For a so-called Conservative who also doubles down as an economist, Stephen Harper looks pretty stupid right now. He appears more interested to play "tough" (insert your favorite sarcasm here...) in front of Putin, than to recapitalize his own fucking banks, or shore up his totally insane reals estate market...
I'm invading Western Canada when the SHTF. I got it on a tip from these boards.
http://skierbob.ca/2012/08/centennial-ridgemt-allan-hike/
I heard that rumor too. I also heard they give you a fresh plate out puotine, with warm cookies and milk after.
I have started researching by watching the movie "Canadia Bacon".
https://www.youtube.com/watch?v=2l_6a2H37QM
https://www.youtube.com/watch?v=l5l0PD80u9k
Study hard.
RIPS
TAKE THAT YOU SNOOTY MAYO EATING FROGS
Interesting. I didn't know Canada and the U.S. were different entities.
We like to pretend that we aren't conjoined twins that happen to have a tumor attached at the south.
I have tried to tell my friends here in Canada that in the early 90s they eliminated all deposit requirements and nobody believes me. They don't get that when a private bank like Scotiabank makes a mortgage, they just print it, voila. Once again, too surprising to believe.
(Let me reiterate this: when a loan is made, the private bank can print Canadian currency into existence). All the bank of Canada does through the mint is print notes.
My coworkers believe that nothing will happen to Canadian banks when I talked to them about bail-in. They won't believe me and accused me of lying.
Shamefully, Canada lied through it's teeth on the safety of Canadian banks during the 08 crisis. In fact, all the major Canadian Banks took a bailout and many were in excess of their market cap.
Here is the link to the Canadian Centre for Policy Alternatives white paper on "The Big Banks Big Secret" and the figures that spell out the bailout taken by each bank.
https://www.policyalternatives.ca/publications/reports/big-banks-big-secret
Whalley World:
Truth be damned - all that matters is whether us sheeple bought the BS
[Democrecy - is the right to vote for our brand of thief...]
I also have tried to tell people about the bail-in but they usually either don't care, don't believe me, or don't believe that a bail in situation could occur. It is kind of crazy, I just tell people don't beleive me go and read the federal buget from 2013 I can't remember the page # off hand but I've given it out before, you can go read for yourself if you like.
My favourite part of the whole Harper legalizes Cyprus style bailout in 2013 thing is that it took the S&P a whole year to realize and didn't downgrade any Canadian bank credit ratings until 2014. Then whenthey did they said it was because of some bs like "we believe the Canadian government might be less willing to bail out the banks then they were in the past." I was like ya... no shit... they said they aren't going to bail them out last year, there's no maybe they will or maybe they won't.
Scotia has to borrow money from somewhere to fund any mortgage it issues. Just like any other (non-central) bank in Canada.
No Pitz. Banks create money ex nihilo. Loans beget deposits. The Bank of England recently wrote a nice little paper explaining this. Do try to keep up.
Central banks, perhaps. But not commercial banks, such as Scotia, BMO, etc.
No, man. Commercial banks. You really need to get a clue. Or stop intentionally posting disinfo.
Money is debt, and since Canada is the only country in the world that has 0% fractional reserve, it all gets printed down at your corner friendly neighborhood bank. Ever notice how they don't give a shit about getting deposits anymore? Deposits are only useful to them to take to the tables.
Sorry bro, back of the class if you don't know what money is. That's entry level reading around here.
Nope, commercial banks don't print. They have to borrow. Just like everyone else who isn't the Bank of Canada, in Canada.
pitz:
The way I see the Ponzie is this:
Bank creates Debt out-of-thin air per demand for loan[s]
Payments on this loan on other hand are assists - require real dollars
Shares/profits/investment/CEO perks drawn from income [assits inflow]
SHTF when inflow drops [bad loans/no new loans/poor stock investments etc]
Banks can and do try to smooth the fluctuations by exchanging overnight
Debt between themselves - however that then has cost on assit side.
Above seems 'airie and unreal' but take USA Debt where real Debt is reported 17 trillian but is actually some 220 trillian in IOU's. There isn't that many dollars printed to begin to cover 'payment-in-full' [USA isn't even able to cover interest on that debt without borrowing an extra 1 trillian every year]
Our whole financial system isn't based on assits like you and I are trying to live on. It's based on Debt - in other words Debt functions like a cancer... it consumes, never creates...
Isn't this all just an illusion, this capital issue, when the entities can print money at will? Dark pools. Shadow this and shadow that. How can anyone believe any of it?
Printing money is a great idea, until no one wants your currency. One way this can go bad is when cash flow from the central bank goes negative, increasing the deficit, and soon you are printing to pay interest on your debt.
See Argentina..., once, twice, thrice...
As some smarter guy nicely put it some time ago "Devaluing a currency is like peeing in bed. It feels good at first, but pretty soon it becomes a real mess."
three cheers to you ZH!
assets = larger printer cartridge
Bank of Canada, like the rest of CBs, can print too. They have been doing that at half of the US rate.
I guess the only safe thing to do is buy a ranch in Chile and store my gold in Switzerland.
And Singapore.
Dr. Engali:
You may store your gold with me - I'll take good care of it...
[just like Ft Knox - it's here, I swear... but, you can't get it back]
How about a ranch in Alberta with your gold in your ranch?
Presumably the run down was done by Carney and we have got him now
Too bad someone else already sold your shit or Carney could have stolen all your shit too.
You know... it's almost like tptb are laughing at us when they put a person named Carney in charge of the bank... Of course he's gonna fuckin' steal everything...
The Cover of this particular issue was called "The Good Banker" showing his theiving fucking smug mug.
http://www.readersdigest.ca/home-garden/money/one-one-mark-carney
I wanted to puke when I saw this.
Terminus C:
ah, a size 46 coat on a size 38 body....
either he's a 'flasher' or coat made to hide the stolen dollars when he leaves the office each day.
I know some Canucks and by and large they strike me as rather stingy, parsimoniousness showing up in their central banks reserves, or lack thereof.
If Canada has a codified bail-in law it means that all deposits will count as reserves.
So Canada is safe though the depositors are not so much.
The ultimate socialism.
Safe haven? Nobody remembers TD, Royal Bank, CIBC and other Canadian banks getting bailed out by the FED during the 2008/9 crisis either. They took in billions despite telling the rest of the world they were healthy and didnt need anything.
Just moar smoke and mirrors from the Bank of Canada...just like all the CB's.
Bottom of page 144-145. Will blow your mind.
http://www.budget.gc.ca/2013/doc/plan/budget2013-eng.pdf
I keep seeing this document and not much else.
Canadians don't care much for finance of the political and ideological type, so maybe its just not discussed.
But I'd like to see how it actually is codified into law rather than just this general statement of "hey, we are totally gonna do a bailin thing that will like totally make thigs stable in case anything that can never happen happens".
As someone else said in this thread, a bailin regime could make all depositor funds part of bank capitialization in the literal sense depending on how it is done.
*edit* Until I see such a document, I will continue to believe that even the ZH conspiracy crowd has no idea how badly the Canadian depositor will get screwed. If we dont know the details we must assume they are outrageous
Garth Turners blog has a good explanation of the "bail-in" - and deposits less than 100,000 are exempt. It's a short but insightful read.
http://www.greaterfool.ca/2014/08/03/baleful/
It'a actuily pages 154-155 using the PDF page counter.
Fuckin' pricks assert the 'bail-in' is a risk management device that protects taxpayers.....
Who's got the rope & where's the lampost?
I've seen an argument that the IMF paper that spawned the bailin idea actually had measures to bring financial and criminal accountability among to the bank executives. IOW, it was intended to be a way to stabalize things while also finally punishing those responsible.
Of course no nation has bothered codifying the second part and I doubt anyone will.
If you live in Canada and are worried about Banks then please move your monies to a Credit Union as they offer extra bonus provincial guarantees on deposits. Please be sure to pick a good province. (IE. not Ontario)
As I understand it, the big bonus of the credit unions is that federal legislation prevents them from getting mixed up in the derivatives casino. Even if your CU goes BK you would probably get 90 cents on the dollar back whereas the big banks will take your money 100x before you hit the ground and still be bankrupt.
I love that part of it, how its all to protect tax payers... I guess those taxpayers with no money in the banks or offshore assets etc.
Not that a bailout would be a good idea or anything but still what kind of protection is having your deposits taken?
MSM is Canada is a daily promotional piece on MOAR socialism. No one knows about what goes on in Canadian banks because it is never reported - the pigs in the main house don't owe you an explanation, or so says Orwell.
Bank of Canada's assets are in the ground graciously being looked after by junior gold mining companies until they day they are confiscated... I mean "needed".
Yep, thats exactly why I don't take advantage of the "tremendous opportunity to leverage the coming precious metals gains".
I think the mining stocks are "undervalued" precisely because the big players see that it will take a financial crisis to reset PM prices and that event will spell bankruptcy for miners (which TPTB will pick up for pennies on todays dollars while the current stockholders get 0) or governments will nationalize gold mining, removing the opportunity to profit much.
I think when the big one comes, people might be suprised at just how coordinated the "unplanned emergency measures" seem to be.
Mmm indeed
The very reasons I have been removing my 'wealth' from the Canadian banking system the past few years. I believe zerohedge has highlighted the abysmal tier one capital ratios Canada's bank have had in the past. But I must add that the national myth about our banking system is strong and powerful, with a compliant corporate media propagating it every chance it gets; especially how well Canada 'weathered' the 2007/8 financial crisis. There aren't nearly as many challenges to the narrative here as well...but I'm trying...
http://olduvai.ca
Zerohedge has never highlighted Canada's banks "abysmal tier one capital ratios" because Canada's large banks don't have abysmal tier one capital ratios. I'm not talking about the central bank, I'm talking about RBC, TD Bank, etc.
No offense or anything, but I have no idea how capitalisation can be applied to a central bank.
Great comment, no shit.
One of the many reasons I left my home country of Canada in 2008 to move to China. I also became a non-resident so those thieves could no longer steal my money. What a joke of a vassal/US puppet...
China, ya you are SO much better off there.
In China he pays his taxes monthly and he's done - there are no audits 5 years later. Taxes are lower than Canada. And he probably doesn't keep more than spending money in China itself. So yeah, he IS better off there.
Right. Except for the fact that he is in China.
...... there are a few decent countries available, I've been hangin round Vietnam for the past couple years lots of western style developments around from Hanoi to HCMC - Saigon- surprisingly VN offers a high degree of personal freedom - for those interested in volunteerism VN is a good example but like so many other ASEAN countries income tax applies to monies earned in country if you work outside and bring money into VN you don't pay income tax ...... yeah what a backward country ......... and the fishing is really good too....... 45kg fish everywhere .......
I did the same 4 years ago! Shanghai rocks!!! If I ever see Canada again it'll be too soon...
Take a good lungfull of whatever is there to breath.......I hope you never need medical care.
Just about any country will treat you better than the one you are born in.
Geeez, end-times. Simon Black actually has a worthwhile article... We are doomed
22.18 1 oz canadian maples...
go lower pm`s please
Here's some good times. GDP ranking | Dat
Via the World Bank. Updated July 1st, 2014. I think the numbers are complete " horse shit", but I'm interested in what otherZ/H readers think.
Here's another fun link. http://www.nationaldebtclocks.org/
I wonder how they get these politicians to obey completely whatever they are told to say and do. it is something beyond the money and status.
actually some things are best left undiscovered.
I am speculating that they have evidence of said politicians with either dead hookers or live boys.
The reason why Canadian banks feel they are the cream of the crop is that they can rely on interest rate fixes @1%, rather than see treasury bills in special pricing.
Just don't let anyone tell you that it's perfectly acceptable for the banks to head over to the central bank and have their mortgage bond derivatives called covered bonds swapped for treasuries.
TD.TO
http://scharts.co/10DJLw5
Well practiced at helicopter dropping money. Nobody up there bats an eye about it either, just thinks of it as benevolent government.
capital requirements don't matter to central banks. This article belongs on Russia Today.
Canada is a pile of socialist goo. If it weren't for Alberta oil, Canada would be worse off than Spain.
Decades of left wing government with bloated financial agendas that continuously fail without repercussion (ie: some politicans belong in jail, but instead they whip out golf balls when testifying).
When oil prices fall back to 30-40 per bbl, Canada is fucked.
And with 400 million people in north America, but 7M assholes insist on speaking useless french while the goobamant insists on dumping billions to force feed it on the rest of the country - what a shit show.
How does that regurgitated bullshit taste?
Damn it he's right! And if Saudi Arabia didn't have all that oil they would all be living in tents too. Those fuckers.
Those poor igloo living bastards! They could never make it on their own!
He is actually correct
Canada has "equalization transfer payments" between provinces, socialism on a grand scale
Several provinces are actually nothing more than welfare recipients
The French in Quebec, which would like to separate from Canada, are the biggest welfare recipents, to the tune of 9 Billion $ yearly if memory serves
Of the 400 million, 100 million+ speak Spanish...
And... Free Jon Corzine!
...... Harper is that you???
Where'd the gold go?
Great question.
Sold it for Euro's around the bottom 2000-2001 I think.
To the royal family...and friends.
Guess you're not Canadian, because if you were you wouldn't care.
hey any question that gets it s own facebook page is worth asking
https://www.facebook.com/pages/Why-does-Bank-of-Canada-have-almost-no-Go...
Now then - where have all the flowers gone?
Simon should go back a little further. In 1990 Canada had approx. 450 tonnes.
This article has an idea where it went : http://canadianawareness.org/2012/11/the-story-of-canadas-gold/
Duffy:
your gold is safe in Ft Knox -
[however like France & Germany's you ain't getting it back either]
The Canadian Gold was sold......to become a member of the IMF.....now Canada holds SDR's.....and controlled through "Washington". We need to quit Nato....walk like we did with issues from the UN. Sell our Oil overseas and only become involved in Peacekeeping where our forces would come up against the USA and it's mercinary's. We have been fucked over by our so called friends.........now we spy on our own....for American Corporations.....Donald Rumsfeild etc............Profits have scewed the 3rd world into starvation.
LOL!!! So to clarify, everyone is looking to a strong central bank/banking system for future strength? Ok. Good to know.
Just wait until Canada's massive real estate bubble blows up.
Already well in progress. Prices have been declining across Canada for more than a year now. Bank profitability has been enhanced as an artifact of such, as they had the foresight to effectively 'short' the housing market.
No decline in Toronto, or Van..Calgary and Edmonton have not burst either..not sure where your getting info from?
Toronto, Vancouver, and Calgary have been falling for more than a year now. Not sure where you're getting your info from.
I live in T.O and have been looking for property in Edmonton and Calgary, can you cite some stats?
Here is one states 5% increase yoy 2013-2014 across Canada.
Toronto +7.3% Calgary +5.2% Edmonton +3.3% Vancouver +6.3%
http://crea.ca/content/national-average-price-map
What about your stats?
In case you did not know already:
go through
greaterfool.ca
"A canadian housing bubble" blog.
It's Garth Turner's blog, he dissects some of CREA stats lies.
You are a liar, plain and simple............Quite simple, Yes you are.
I see your problem...
http://en.wikipedia.org/wiki/List_of_Canadians_by_net_worth#Richest_Cana...
Only 4 of the top 20 richest canucks are Chosenish. Chosenish are about 1% of Canada, only 20% of the top 20 richest?
That's no sort of disproportionality, folks!
You want to be somewhere around the 2.5%/50-60% threshold, by gum. Anything less is mere Romney-close.
http://opinion.financialpost.com/2012/07/06/lawrence-solomon-obama-jewis...
ok, ok, lol, forgive my glibness.
Enjoy your bail-ins, hosers.
A lot of crony capitalists on that list.
Great article. Canada is in bad shape .
The myth that Canada is doing so well is because we did alright in the 2008 debacle.
Just luck.
Some of them have capital. According to CIBCs 2013 annual report, they have a capital ratio of about 10%. The average of the banks was more than 7.5%
Canada is backed by comodities. If they have value the CB can fiddle. If they go down no CB action can help Canada.
Looking to your bank for help? Oh this is too much
They still don't get it
I bet the French Canadian bank is worse off.
It is
Caisse Desjardins was taken to the cleaners in NY and billions in public sector employee pensions were lost
Since the Quebec government can't print money, and those were its peeps' money it lost (99% of provincial employees are ethnic French), they hired extra help at their Revenue offices and have been monkey hammering any business that shows signs of life, sometimes mailing out bogus tax bills to see if they might get paid by mistake, and seizing bank accounts without warning
Stephen Poloz is a Muppet Central Bankster that likes dancing on the head of a pin with his dance partner Janet
'the whore' Yellen. They never get tired and they have nice
happy smiling faces to match their dance routine. This is
CANADA has talent vs. American Idol Worship. The guest
adjudicator for the dance contest is none other than Alan Greenspan, and the other Three Stooges, Robert Rubin, Larry Summers, and Ben Bernanke.
p.s. I thought pick on CANADA day was Thursday? Who changed the date, Z/H?
Canada is now offering 1500 bucks and course credit to any high school students who join the reserves. I wonder if this has anything to do with Baird recruiting an axis of minitrue along the drone curtain.
Canada better get out of Nato.....We do not need to fight for the Petro dollar. America has paid Actors to promote how bad our oil is..............As a Canadian I always flush twice knowing Americans need the water. The lies that coume out , half truths and policies from the south truthfully hate American Politices, News and Banking. The truth is coming , watched the 2012 "the four horsemen"................monsanto............right in the fight for top honors. Reap what you sow.
Clearly multiculturalism doesn’t work.
The euro look’in folks will be driven North!
RBC has a tier 1 capital ratio of 13.2%. You might as well tell the whole story Simon, not just cherry pick your numbers.
IMO, where money is created out of thin air, this analysis is meaningless.
bloomberg is such a fountain of b*llsh*t
any country with a guy named harper at the head of it has got to be a disaster.
Yikes!!!
Are there any benefits of operating out of Canada than the US? Outside of Universal HC and literacy of the workforce, I'm straining to find more reasons.
From article:
Moreover, Canada also has ZERO reserve requirements for its banks; this means that Canadian banks are not obliged to hold any of their customers’ deposits.
So yes, it’s legally permissible for a Canadian bank to loan out 100% of its customers’ funds.
Well, i my opinion, the fractional system starts at 99% and goes to the ZERO reserve requirements.
the only difference is the way to get there.
Therefore there is no difference to other banks, be it 7% or 15% or what so ever percentage of the reserves.