Canada’s Banking System Differs From US, Unlikely to See Run on Deposits: Economist
News Analysis
Canada’s banks are fundamentally different from American banks and less likely to suffer from the malaise that has consumed the U.S. financial system for most of March, says a U.S.-based economist and former senior fellow with the Montreal Economic Institute. He nevertheless adds that banking reform, as it relates to protection for depositors, is needed writ large and must avoid creating moral hazard.
“The Canadian banks are of course much more diversified,” Peter St Onge, research fellow with The Heritage Foundation in Washington, D.C., told The Epoch Times.
“You tend not to have sort of systemic-level banks, like Silicon Valley, where tech withdrawals are going to cause a chain reaction,” added St Onge….