Houses for sale in Ottawa

South of the border, the high-profile collapses of Silicon Valley Bank (SVB) and Signature Bank sent chills through the financial system and raised expectations of a spate of bank mergers as a result of the growing turmoil.

Still, it’s important to recognize that this is far from an SVB-type scenario – and that Canada’s banking system is very different to that of the US, according to the Canadian managing director of an international consulting and business advisory firm.

Shilpa Mishra (pictured top) of BDO Canada told Canadian Mortgage Professional that with Canada’s banking space dominated by its five largest players, opportunities for inorganic growth in a saturated market were inevitable – and what’s more, those institutions operate in an environment that’s intensely scrutinized by regulators.

“The Canadian banks are very, very highly regulated,” she explained. “The large five Canadian banks [also] have a very large and very diversified customer base. SVB did not, and potentially Laurentian – being a smaller bank – probably does not either. So that problem does not exist in our banking sector.

“Also, Canadian banks have to comply with Basel III standards. As a result, a bank has to maintain capital and liquidity buffers that help to withstand any kind of economic downturn or an episode of market stress.”

Source link
Ottawa New Listings

Leave a Reply

Your email address will not be published. Required fields are marked *