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Email this11:22 am
February 7, 2019
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Norman1 said
Dean said
.All True ⬆️But in the end, it's ... 'All About The Money' ... isn't it ?
Actually, it is about the profits and not the money.
The large banks have learned that it is better to not accept high-cost deposits when they can attract enough lower-cost ones.
RBC does know about Oaken's 2.80% savings account. RBC isn't going to match that 2.8% when it can attract enough savings account deposits with their 0.55% eSavings rate.
The banks have started to apply that discipline to their mortgage lending too. One isn't going to be offered their best mortgate rates now with no relationship. See bank CEO comments reported in Some banks rethinking strategy on mortgage competition.
Yep, all about profit.
We are down to one Big 6 Account that collects most of the retirement income and auto-pays all of the bills. The surplus is distributed to high profit (to us) non Big 6 HISA's and GIC's. I do now have one RIF redemption flowing to a Joint EQB Personal Account to qualify for their 2.75% across all our EQB HISA's.
| CGO |
11:48 am
April 6, 2013
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As well, lots of this is fake drama created by the media for entertainment and not information.
One can see how fake the competition drama is by events like last summer when Equitable Bank successfully closes $300 million deposit note issuance.
Challenger Bank Equitable Bank was originally going to issue $200 million of deposit notes. $605.6 million of orders came in. Equitable Bank bumped up the issue to $300 million and declined the rest.
Guess who helped Equitable Bank find those $600+ million of orders for its deposit notes?
The issuance was completed with BMO Capital Markets, CIBC Capital Markets, National Bank Financial Markets and Scotiabank acting as joint leads and bookrunners, with RBC Capital Markets and TD Securities supporting as co-managers.
1:24 pm
March 15, 2019
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Norman1 said
Guess who helped Equitable Bank find those $600+ million of orders for its deposit notes?
The issuance was completed with BMO Capital Markets, CIBC Capital Markets, National Bank Financial Markets and Scotiabank acting as joint leads and bookrunners, with RBC Capital Markets and TD Securities supporting as co-managers.
Underwriting (as opposed to lending money) debt issues is pure profits. Lending money ends up on your balance sheet carries the risk that you might not get paid back.
1:30 pm
March 15, 2019
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COIN said
Underwriting (as opposed to lending money) debt issues is pure profits. Lending money ends up on your balance sheet carries the risk that you might not get paid back.
What will Equitable do with $300mm?
2:33 pm
April 6, 2013
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Equitable Bank will add that $300 million from the two-year deposit notes to their pool of two-year money. Other money in the pool is from the two-year GIC's issued through deposit brokers and their EQ Bank channel.
All that money is likely lent out by now through various loans and leases.
8:22 pm
January 10, 2017
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Total Global Deposits: Big Six Canadian Banks (2022–2025)
Figures are in Billions of CAD
Bank2025 (FYE) 2024 (FYE) 2023 (FYE) 2022 (FYE)
TD Bank (TD) $1,484.4 $1,506.8 $1,196.1 $1,215.1
Royal Bank (RBC) $1,446.0 $1,409.0 $1,310.6 $1,204.8
BMO Financial $976.2 $982.4 $938.1 $848.4
Scotiabank (BNS) $966.3 $943.8 $935.4 $916.1
CIBC (CM) $775.1 $727.4 $704.7 $692.1
National Bank (NA)$428.0 $333.5 $302.2 $285.3
Combined Totals $6,076.0 $5,902.9 $5,387.1 $5,161.8
The big six are still slowly growing their deposits so, for now, there is big no incentive to change.
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