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Email this12:42 pm
February 16, 2023
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EQ Bank announced May 5 that final approval by the Minister of Finance has been granted for the acquisition of President's Choice Financial. Closing date remains "this summer". No immediate changes for existing clients but all PC products, including PC MasterCard will be transitioned to EQ Bank according to the announcement. EQ Bank will be the sole financial partner for PC Optimum.
https://www.theglobeandmail.co.....financial/ [login required]
1:01 pm
January 12, 2019
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.
Also here ➡️ https://www.highinterestsaving.....financial/
- Dean
" Live Long, Healthy ... And Prosper! "
10:31 am
November 19, 2014
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I see today that PC Bank is offering 4.0% on a 5 year GIC (thru TDDI) same as EQ.
Maybe a sign they will be more competitive under new ownership ?
9:12 am
December 12, 2009
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Koogie said
I see today that PC Bank is offering 4.0% on a 5 year GIC (thru TDDI) same as EQ.Maybe a sign they will be more competitive under new ownership ?
Unlikely. Likely a temporary promotion, either for customer and deposit acquisition, or for liquidity purposes.
The transaction hasn't yet closed, but it is close to doing so (likely expected in June 2026). Integration into the EQ Bank platform should happen between July and December 2026, much quicker than everyone (myself included) expected.
I also suspect EQB Inc. will begin downsizing the number of CDIC member subsidiaries. They're a paying a lot of extra funding costs and administrative, legal, and compliance costs. They will likely begin with President's Choice Bank, amalgamating it into Equitable Bank most likely, making the deposits subject to merged deposit insurance rules.
9:32 am
October 27, 2013
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But to be clear, anyone with PC Bank GICs, they will continue to be CDIC insured separately from EQ entities until the GICs mature. That is standard CDIC policy. National Bank says the same thing on their website with the absorption of CWB.
I think liquid deposits are separately insured for 180 days after any consolidation but may be wrong on that.
10:55 am
April 6, 2013
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The deposits will continue to be separate deposits under the CDIC Act, section 13 for at least two years.
Even longer if EQB decides to keep President's Choice Bank going as they have with Concentra Bank.
11:15 am
August 4, 2010
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PC Bank may be putting themselves at the top of the 5-year brokerage charts at 4%, but they are alone way at the bottom of all the other 1-4 year durations, at 2%. On TDDI, that's often a 50-75bps gap up to the next group of Big6 banks, with a couple of exceptions. They are going out of their way to get in front of the 5-year eyeballs, and are actively scorning everything else. Pity the poor folks who have existing PCBank GICs that are set to auto-renew!
TDDI is continuing to bump their own TD rates up to the top of their 1 and 2 year charts, but stay down in the lowly reaches with their Big6 brethren on 3-5 years.
BMO must be awash in cash right, or scorn alien customers - they've dropped themselves distinctly below the rest of the Big6 on the TDDI charts, but offer better rates than the Big5 on their own BMOIL sheet (I have temporary access to a dormant BMOIL account). BMO 3-year is 2.50% on TDDI, other Big6 including TD are 2.85%, but on BMOIL the BMO rate is 3.30%. Home field advantage!
12:24 pm
October 27, 2013
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FIs adjust their rates to attract the term of funds they are looking for. There is no other magic about it. EQ obviously is looking for 5 year money.
5:06 pm
November 18, 2017
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Yes, but the question is why? Are they craving longer liquidity? Or stability in TrumpWorld?
RetirEd
9:20 pm
December 12, 2009
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AltaRed said
FIs adjust their rates to attract the term of funds they are looking for. There is no other magic about it. EQ obviously is looking for 5 year money.
You mean PC Financial. The deal has not closed yet. PC Financial has a very different funding structure, which includes a mix of deposits and a credit card securitization trust. It will be interesting to see the changes planned post-closing.
8:53 am
October 27, 2013
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I actually meant EQ. Even though the deal has not yet closed, PC Financial (PC Bank) will be positioning themselves to align with the objectives and strategies of their new masters, so as not to upset terms and conditions, and expectations, of the deal.
All mergers and acquisitions do/should/typically have terms in the agreements to prevent the 'to be' acquired company from going rogue, making making material commitments that would conflict with acquiring company strategies and the expectations the acquiring company has at time of the initial M&A agreement. It is the nature of the business.
10:16 am
April 6, 2013
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Equitable Bank could also make the soon-to-be-subsidiary PC Bank a targeted offer of 5-year 4½% deposit notes. PC Bank could then offer 5-year 4% GIC's through deposit brokers and investment dealers to fund the purchases of the notes.
After paying the customary ¼% x 5 = 2% deposit brokerage commission, PC Bank would earn a spread of ¼% per year. That spread would end up back at Equitable Bank or EQB Inc. after the PC Bank acquisition closes.
