In the not too distant past, Canada’s banking system was widely admired for its stability. While things aren’t necessarily quite so happy these days, the industry as a whole currently contributes around 3.5 percent of our national GDP. I thought I’d take a quick look at how secure our wealth and property really are in the hands of modern Canadian financial institutions. In particular, I’m curious about how the system is holding up in the context of an extremely volatile mortgage sector. Just to get it out of the way, up to $100,000 in individual deposit accounts (along with some investment accounts) in federally-regulated institutions are protected by the Canada Deposit Insurance Corporation (CDIC). Deposits in some provincially-regulated credit unions are protected for up to $250,000. The CDIC is funded by member premiums and not the government and, through its history, has never failed. But how about mortgage lenders? .... CLICK HERE for the full story
A discussion on political, economic and social issues in British Columbia, and Canada