It's great to be Canadian!!!
Current Information:
- Oct 7, 2008 IMF predicts Canada will lead the G7 countries in growth at 1.2% in 2009.
- Canada has 18 domestic banks, the US has 8000.
- Oct 9, 2008 Prestigious World Economic Forum declares Canada has the soundest banking system in the world out of 134 countries, US ranked 44th.
- Sept. 30, 2008 BC's Employment rate is 95.4%, text book perfect!
- Sept. 30, 2008 BC's Consumer Price Index is 1.9%.
- GE costs will drop 28% in 2009, yielding its most significant competitive pricing advantage ever.
- RBC wealth management analysis of North American stock market history shows 12 bear markets 1956-2000: average duration 13 months: median 9 months: average decline 28%: median decline 22%.
- Out of all Canadian provinces, BC is least dependant on the US market.
- Technology employment in BC is growing faster than in any other sector in the province.
9 Reasons Canadian banks will come out ahead:
- By law shares of large, publicly traded banks and insurance companies must be "widely held" which in effect prevents domestic mergers or foreign take-over's unless supported by the federal finance minister.
- Canadian banks were the 1st in the world to adopt new risk-management rules under Basel and 11 capital framework.
- Canadian Bank Act requires mortgage default insurance on loans where there equity is less than 20%.
- Canadian mortgage payments in arrears in July 2008 were running at historic lows...less than 1/3 of 1%...about 1/6 of what the US experienced in the depths of its 1990's housing slump.
- Canadian banks approvals of "non Prime" mortgage runs at bout 5% v the US at 23% in 2008.
- In Canada the Office of Superintendant of Financial Institutions oversees both commercial and investment banking, in the US only commercial banking has been regulated to the same degree.
- No US bank has branches in all 50 states v all 5 major Canadian banks have branches in all 10 provinces thereby deversifying the risk geographically.
- Canadian Office of Superintendant of Financial Institutions requires chartered banks maintain a minumum Tier 1 capital ratio of 7%; in the US the minumum is 6%.
- In the latest quater, the actual rate Tier 1 capital ratio for Canadian banks was 9.8%...63% above the required minumum.