Canadian banks have been considered mostly risk-free for a long time, but every streak ends. A former Canadian banking regulator urges the country’s policymakers to prepare for that day while it still can. In a new report from CD Howe, a former OSFI manager urges the country to modernize its banking crisis response and adopt more prudent measures. Failing to do so can result in a major hit to the country’s financial stability, resulting in a wide range of issues from bank runs to an outright collapse of financial institutions. As unlikely as this sounds, it comes after the recent wave of global financial institutions that were believed to be invincible, collapsed over a few months. Policymakers were left claiming no one saw it coming, but were they even looking?
Wanna bet they seize your savings to prop up the banks?
