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Email this9:56 am
January 12, 2019
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I wonder how far this will get . . .
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Today's BNN News Article ➡ https://www.bnnbloomberg.ca/banks-in-canada-push-for-deposit-insurance-boost-to-cut-risk-1.1898440
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Of note ... none of the Big Banks appear to be involved in this call for higher CDIC limits.
Time will tell of course, but I wouldn't hold our breath.
- Dean
" Live Long, Healthy ... And Prosper! "
10:16 am
September 11, 2013
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As I said my impression is this gov't does whatever enough voters ask for so it might be the time to fire up the social media (not me, I'm not on it) and see if enough people get behind it. Plus it's a vote-getter to bash big banks (who appear not to be interested in higher limits) so this gov't would have another reason to consider.
10:54 am
January 12, 2019
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As a reality check ... only a small portion of Canadian voters are concerned with CDIC limits, and even know that they exist. The average working Joe & Jill with 'maybe' $300 in the bank, couldn't care less.
And then there's the Big Banks that dominate our banking system, that would have No interest in paying the higher CDIC premiums that would be required, for higher coverage limits.
Sadly, I expect this call for higher CDIC limits to go Nowhere.
- Dean
" Live Long, Healthy ... And Prosper! "
11:30 am
March 30, 2017
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Dean said
.
As a reality check ... only a small portion of Canadian voters are concerned with CDIC limits, and even know that they exist. The average working Joe & Jill with 'maybe' $300 in the bank, couldn't care less.And then there's the Big Banks that dominate our banking system, that would have No interest in paying the higher CDIC premiums that would be required, for higher coverage limits.
Sadly, I expect this call for higher CDIC limits to go Nowhere.
Dean
The funny thing is those that ask for a higher limit think they are asking for a free meal.
The reality is that extra cost to the bank will be fully paid by the same mouths that ask for it...
11:54 am
September 11, 2013
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Dean, I agree, the calls for higher CDIC limits from average-joes are probably mostly from a few online posters, not nearly on the public's radar otherwise.
12:44 pm
December 12, 2021
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Big 6 Banks VS smaller financial institutions ...... and the winner is "The big 6 Banks."
The current systems benefit the big 5 Banks and they know it, ppl including myself have no problem whatsoever to go over CDIC limit with the big 5 Banks but not a $1.00 over CDIC with a smaller financial institutions
1:27 pm
April 27, 2017
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Most people don’t know about CDIC insurance regardless of the amount of cash they have. An average joe has other things on his mind. He can’t be expected to know this; nor to do due diligence on every bank.
A more reasonable CDIC limit would enhance competition and benefit everyone.
Worth noting that we are paying for the presumed safety of big banks too. They are only safer because a) They limit competition and charge more than a good market would let them b) Taxpayers are presumed to be on the hook if large banks screw up (Credit Suisse style).
1:30 pm
March 30, 2017
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agit said
Big 6 Banks VS smaller financial institutions ...... and the winner is "The big 6 Banks."The current systems benefit the big 5 Banks and they know it, ppl including myself have no problem whatsoever to go over CDIC limit with the big 5 Banks but not a $1.00 over CDIC with a smaller financial institutions
if CDIC limit is raised so much that smaller guys can easily attract deposit too, they will have zero reason to offer higher GIC rates than the big guys.
Be careful what one wishes for.
1:32 pm
April 27, 2017
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savemoresaveoften said
if CDIC limit is raised so much that smaller guys can easily attract deposit too, they will have zero reason to offer higher GIC rates than the big guys.
Be careful what one wishes for.
Not true in real world. Small banks offer better rates in the US. Large ones tend to rely on stickiness and apathy.
1:49 pm
October 27, 2013
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I am not fond of a higher CDIC limit because it places disproportionate burden on the big 5-6 to fund insurance that will more likely be necessary to bail depositors in fintechs.
2:41 pm
March 30, 2017
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AltaRed said
I am not fond of a higher CDIC limit because it places disproportionate burden on the big 5-6 to fund insurance that will more likely be necessary to bail depositors in fintechs.
AltaRed said
I am not fond of a higher CDIC limit because it places disproportionate burden on the big 5-6 to fund insurance that will more likely be necessary to bail depositors in fintechs.
I am with you.
I will only support if they change the program so that those FIs that wants to purchase a higher limit can do so, but not mandatory.
Maybe 2 tiers package, either 100k or 300k, the FI can decide which tier they want and pay the premium accordingly.
4:05 pm
April 27, 2017
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Big 5 should shoulder most of the costs for the simple reason that taxpayers backs them up and not the small banks. And thats on top of various competition restricting measures they successfully lobby for.
6:58 pm
January 3, 2009
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Rather than raise the CDIC limit, how about break up the monopolies, raise their interest rates and offer competitive products? 
9:04 pm
October 29, 2017
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savemoresaveoften said
if CDIC limit is raised so much that smaller guys can easily attract deposit too, they will have zero reason to offer higher GIC rates than the big guys.
Be careful what one wishes for.
I don’t think so. If rates were the same at small FIs as big banks, I’d choose the big banks for my money. CDIC limits have nothing to do with FI choice, it’s the rate offered and whether the FI is CDIC insured at all.
9:16 pm
October 21, 2013
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Of course the limits SHOULD go up. They haven't kept anywhere near rate of inflation.
Of course, the Biggies WILL object, and maybe even some of the smaller ones.
I feel confident that a dual system, where you can buy higher insurance will never fly, because it brings attention to the possibility that a bank could fail and to the fact that insurance is limited - the last thing the banks want you to be thinking about.
Perhaps I am misinformed but it is my understanding that the big banks pay a lower rate for the insurance, and that the rates are confidential. Does anyone have any data on the rates the various banks actually pay?
5:47 am
January 9, 2011
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(From CDIC)
In July, 2005 the deposit insurance limit was increased to $100k to “enhance protection for consumers, promote competition among deposit-taking institutions, and help Canadians save for retirement.” Good wording, IMO. So why did everything go back to sleep on this topic for 18 years? OK I hear, politics and votes.
I have no sympathy for the big banks being pretty much the only people immune to increased costs (in this case insurance fees) since then. Furthermore, regarding the competitive marketplace in banking, or should I say the effective lack of same, there's more of a need for higher coverage here than in the States.
Even the Liberal government thinks inflationary taxes based on the inflation rate is a good idea to hammer people with (coming in about a week, giving another cause/effect for BoC to raise rates more?). Yet all these years the big banks avoid ANY fee increases relating to CDIC coverage.
The main accomplishment of almost all organized protests is to
annoy people who are not in them.
7:42 am
April 15, 2015
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kesa said
remarkable really.https://www.businessinsider.com/personal-finance/average-american-savings
https://myratecompass.ca/blog/savings/what-is-the-average-savings-of-a-canadian-by-age/
Both articles are very interesting. The Canadian article shows a stack of US$ in the middle of it. Wonder why ??
9:54 am
January 12, 2019
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Semi-retired ... you're not supposed to notice that ⬆ 
- Dean
" Live Long, Healthy ... And Prosper! "
11:03 am
February 7, 2019
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semi-retired said
Both articles are very interesting. The Canadian article shows a stack of US$ in the middle of it. Wonder why ??
Web designers, writers and advertisers often use stock photos as they see fit but too frequently get caught with details. For example, there have been a number of tourism adds where the agency used photos of different sites/cities/countries; the funny part is the client didn't notice ...
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