This week we go over the recent struggles with American banks and look into what is keeping major Canadian banks from suffering the same fate. Everything from CDIC, Assuris, OFSI and the Basel accords are talked about as we discover what would happen if a Canadian bank collapsed.

Continuity Note: A day after recording this episode TD Bank broke its agreement to purchase First Horizon Bank in the US.

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Useful Resources:

Globe & Mail report on unrealized losses in Canadian banks: https://www.theglobeandmail.com/business/article-canadian-banks-carrying-potential-losses-on-bonds/

OFSI’s comments about the Silicon Valley failure: https://www.osfi-bsif.gc.ca/Eng/osfi-bsif/med/Pages/nr20230315.aspx?utm_campaign=osfi-bsif-carousel&utm_medium=carousel&utm_source=osfi-bsif&utm_content=carousel-header-en

The Basel III Framework: https://www.bis.org/basel_framework/index.htm?m=3_14_697

What Happens when a Bank Fails?