Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result
Home Economics

U.S. Bank Crisis ‘Unlikely’ To Spill Into Canada, Analysts Say

John Wanguba by John Wanguba
March 24, 2023
in Economics, Finance
0
0
SHARES
13
VIEWS
Share on FacebookShare on Twitter

Canada’s top six lenders have sufficient liquidity and manageable credit risks which will help them to come out largely unscarred from the crisis of confidence that has sent shockwaves to the global banks over the last two weeks, analysts said on Monday.

The collapse of two the U.S. regional banks- the Signature Bank (SBNY.O) and Silicon Valley Bank (SIVBV.UL) this month –and the Swiss government-brokered deal for UBS (UBSG.S) to takeover Credit Suisse (CSGN.S) has sparked concerns about the health of global banking sector.

“The U.S. contagion is unlikely to spill over to Canadian banks as the issues in U.S. are unique and specific to certain business models or lending activities,” said James Shanahan, banking analyst with Edward Jones to Reuters.

The Toronto Dominion (TD) bank logo is seen on a building in Toronto
Canada Banks will not be affected by the current US banking crisis

Still, the six top banks have jointly lost 9% or C$57 billion ($41.7 billion) in market capitalization in the past two weeks, according to DBRS Morningstar. In contrast, the U.S. bank index (.SPXBK) has plunged 21.5% in last two weeks.

Canada’s Finance Minister Chrystia Freeland also defended the country’s financial institutions on Monday saying they have capital to survive “periods of turbulence” and shrewd risk management.

Freeland said the government is examining the situation closely and Canadians should be optimistic that at a time of global uncertainty, there is no better place to be than Canada.

On Monday, the Canada’s financial sub-index (.SPTTFS) gained 0.7%. Central Banks across the globe, including the Bank of Canada have opened daily dollar taps to boost the cash flow to banks dealing with liquidity issues.

Canadian banks usually have less exposure to fixed-income securities diversified and stable funding, capital buffers that “should enable these banks to navigate current market turbulence,” said Carl De Souza senior vice-president, DBRS Morningstar.

Canadian Banks have not encountered deposit outflows this month and, as such, “we do not see imminent signs that deposit trends will force the premature sale of bond holdings.”

The positive assurances from the government and market analysts comes after more than a week of market fears and turmoil. In Canada, the financial regulator seized permanent control of the assets of Silicon Valley Bank’s Canadian branch, meanwhile financiers told Reuters that Canada’s technology start-ups would find it more challenging to obtain funding.

Regional Bank Scrutiny

Canadian lenders emerged stronger from the 2008 global financial crisis owing to prudent regulations and since built a reputation for financial stability. The six top banks – including Royal Bank of Canada (RY.TO), Bank of Montreal (BMO.TOO) and Toronto Dominion Bank (TD.TO) – form about 80% of Canada’s banking assets and have evaded scandals or failures that have plagued banks their U.S. and European peers.

The Canadian banks have kept their focus on domestic lending and most of their earnings stem from serving local clients. But in recent years, Royal Bank, TD Bank, BMO, and CIBC (CM.TO) have expanded into the United States by acquiring regional lenders to profit from robust growth in second-tier U.S. cities.

That strategy is now under review since the current bank crisis in the United States was prompted by problems at the regional lenders.

TD Bank, for example, submitted a $13.4 billion bid for Memphis-based First Horizon Corp (FHN.N), over a year ago that is still awaiting regulatory approval. However, last week the regional bank’s stock was hit after the SVB failure.

Buy Bitcoin Now

By Monday late morning, TD shares gained 0.2% and First Horizon rose 3% at $15.28 — still 38% lower than TD’s offer price.

“The market is thinking that TD is in a good position to re-negotiate the deal considering First Horizon is in a tough spot now,” Shanahan said.

TD and First Horizon have moved up the closing date of the acquisition to end of May, with a potential for an extension. TD was not available for an immediate comment.

($1 = 1.3662 Canadian dollars)

Tags: Bank of MontrealbankingbusinessCanadian banksCredit SuisseinvestmentRoyal bank of CanadaSilicon Valley Bank (SVB)Toronto Dominion BankUS banking crisisUS banks
Previous Post

Uncertainty Intensified As Fed Hiked Interest Rate

Next Post

President Of El Salvador Wants AI And Tech Innovations Exempted From Taxes

Related Posts

XRP Explosive Boom Results In Record-Breaking Address Activity
Economics

XRP’s Explosive Boom Results In Record-Breaking Address Activity

by John Wanguba
June 1, 2023
Crypto Bear Phase Gone, ‘Explosive’ Bull Market Imminent – Veteran Investor
Economics

Crypto Bear Phase Gone, ‘Explosive’ Bull Market Imminent – Veteran Investor

by John Wanguba
June 1, 2023
Only 2 Exchanges Registered In Hong Kong As Crypto Ban Is Removed
Economics

Only 2 Exchanges Registered In Hong Kong As Crypto Ban Is Removed

by John Wanguba
May 31, 2023
Will Ethereum Outperform Bitcoin?
Economics

Will Ethereum Outperform Bitcoin?

by John Wanguba
May 30, 2023
Is ReFi The Future Of DeFi?
Finance

Is ReFi The Future Of DeFi?

by John Wanguba
May 30, 2023
Next Post
President Of El Salvador Wants AI And Tech Innovations Exempted From Taxes

President Of El Salvador Wants AI And Tech Innovations Exempted From Taxes

Leave a Reply Cancel reply

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

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin adoption Bitcoin market blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe Federal Reserve finance FTX inflation investment market analysis Metaverse NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • XRP’s Explosive Boom Results In Record-Breaking Address Activity
  • What To Consider When Evaluating Low-Code And No-Code Platforms
  • Crypto Bear Phase Gone, ‘Explosive’ Bull Market Imminent – Veteran Investor

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish