The Success Of Canadian Banks Essay - 821 Words

Introduction Canadian Banks has never attracted that much of attention of the whole world until the subprime meltdown in 2007/2008. Canada was the only G7 country that did not have a government bank bailout. Canadian banks remained profitable through the crisis. A World Economic Forum report ranked Canada first among 134 countries on the soundness of its banks. This paper aims to analyze persuasive reasons for the remarkable success of Canadian Banks in the subprime meltdown. Regulations have been set before the crisis. However, different countries’ implementations are different in practice. The main arguments of this paper are related to the number characters-, leverage ratio and return of equity/asset (R-O-E/R-O-A). Using empirical data of these ratios in different banks in Canada and America lead the paper to several soundness conclusions. Background In 2008, subprime financial crisis started from the United State of America, soon the whole global economic are shaken by this crisis. However, Canadian bank industry survived from this crisis surprisingly. How could Canadian banks survive the subprime meltdown in 2008? It relates to conservative policies and strict regulations in Canadian bank system. The Canada Deposit Insurance Corporation (CDIC) insures each depositor at member institutions up to a loss of $100,000 per account. The purpose of that is to protect deposited from bank insolvency and ensuring the financial stability. In addition, Canadian banks areShow MoreRelatedA Canadian Company Called Td Bank Is An Element Of Long Term Wealth Creation Into Their Enterprise1537 Words   |  7 PagesMy company is a Canadian company called TD Bank. Yes banks are mega-glutinous, self-serving machines and TD has these characteristics similar to what we expect and perceive of such institutions. However, I like the leaders of this bank. They play the big boys game but over the years, their community support initiatives, programs, education and financial funding have proven their backing for various communities and entrepreneurial effort s. The following describes how TD Bank has embedded an elementRead MoreCanada s Prosperity And Success1082 Words   |  5 PagesCanada’s prosperity and success can be attributed to many different events in history, in many different points in time. In this essay, I will be discussing how the Statute of Westminster, which was a British law that stated Canada’s new political powers (Hillmer, Norman. Statute of Westminster. The Canadian Encyclopedia. Web. 27 Apr. 2015); the Bank of Canada, which solidified Canada’s economy during the Great Depression (The Bank s History. - Bank of Canada. Web. 27 Apr. 2015); and WWII, andRead MoreCentral Bank : Monetary Policy1178 Words   |  5 Pagesand exchange rates. Until the 1970s, central banks used a currency peg, which linked the value of the domestic currency to the value of another currency, usually of a low-inflation country. But this approach meant that the country’s monetary policy was tied to the country to which it pegged, restraining the central bank’s ability to adapt their policy to shocks such supply shocks or changes in the real interest rate. Consequently, many central banks began to adopt flexible exchange rates, forcingRead MoreCommunication Is the Main Essence of Knowledge and Understanding. the Emphasis on Cross Cultural Communication Has Increased Due to the Ever Growing Global Environment, of Which, This Case Is a Perfect Example. Canadian1494 Words   |  6 Pagesenvironment, of which, this case is a perfect example. Canadian Bank of Nova Scotia increased their share in Inverlat, the Mexican Bank to 54% and took control of the management. Soon after that, BNS started the restructuring process of Inverlat an d sent a team of Canadian managers to Mexico. Cross cultural communications was a major issue between Canadians and Mexicans as seen in the Inverlat case. Due to the communication gap between Canadians and Mexicans, Jim O’Donnell and his management team facedRead MoreMedia s Influence On Consumer Behavior1189 Words   |  5 Pageswhich represent the power of cultural influences, more specifically, how cultures potentially affect and manipulate consumers’ understanding, beliefs, and spending. 1. Video Commercial: BMO Fanfini. This commercial was published on YouTube by the Bank of Montreal in August 2016. The target audience of this commercial is represented by a culture which includes three aspects: ecology, social structure and ideology. The ecology in this commercial is a developed society with sufficient recourses andRead MoreSelecting Trade Banker1089 Words   |  5 PagesCase Study #3: Selecting a Trade Banker Banking on relationship Technon International is a Canadian high-technology development firm, focused on emerging technologies in wireless communications. Technon sources components in China and has offshore programming activities in India covering certain functionality in its new wristwatch PDA with MP3 and cellular capabilities. Technon has several Canadian and international patents to protect its proprietary technology, and has developed some strongRead MoreThe Government And The Central Bank1641 Words   |  7 PagesTo understand the acts of the Canadian government and the central bank we have to take in account the financial damages of what the financial crisis in 2007-2008 caused not only to Canada but also trade partners such as United States and China. Lastly I will present my own opinion of how successful the monetary and fiscal policies have been during the researched time. The research on which this essay is based on comes from the Canadian government, central bank itself, websites which are trustworthyRead MorePorter’s 5 Forces the Russian Commercial Banking Sector and Wealth Management Industry1118 Words   |  5 Pagesbarriers of entry, a moderate power of suppliers in terms of their ability to lure away human capital, increased power of buyers in terms of switching costs, many substitutes, and a high competitive rivalry. To better assess the entry of The Royal Bank of Canada (RBC) into the Russian market, one must also consider Canada-Russian relations. Being the two largest Artic countries, Canada and Russia share many common opportunities and challenges. The countries have a long history of cooperation onRead MoreThe Triangular Relationship : Harper The Us Cuba987 Words   |  4 Pagesadministrations. Since taking office in 2006 the two Conservative administrations of Stephen Harper have coexisted with two US Administrations, the last years of the Republican George W. Bush and the whole cycle of the Democrat Barack Obama. Some Canadian scholars observe a greater ideological and political affinity between the Harper government with Bush’s policies than with those of Obama. It is well-known that US foreign policy during the Bush years was very assertive in consolidating AmericanRead MoreMarketing Proposal For Consumers Professional Credit Union1611 Words   |  7 PagesHowever, there will be a premium option that will waive the transaction fee, as well as gain some enhanced features. It was determined that a credit card reader and mobile application would be a good fit for CPCU by researching the current options, the Canadian market, and if there is a need. First, the most known credit card reader was looked at. This would be Square and it currently operates in Canada, Japan, Australia, and United States (Square Office Locations, n.d.). According to Cocotas (2012)