'This number needs a serious update': Calls mount to raise deposit insurance limit in Canada in wake of SVB crisis
Most industry observers believe the risk of a major bank failure in Canada is extremely low, given that the sector is dominated by a few large banks with diversified deposit bases. SVB’s business model, by contrast, focused mostly on technology start-ups, an all-eggs-in-one-basket strategy that some have blamed for its downfall.
“It should have been higher by 42 per cent, just to keep up with inflation … it doesn’t make any sense,” he added.Article content The categories Larocque was referring to are: deposits held in one name; joint deposits that are held in more than one name; registered retirement savings plans ; registered retirement income funds ; tax-free savings accounts ; registered education savings plans ; registered disability savings plans ; and deposits held in trust.Article content
CARP’s Quinn said it wasn’t “practical for depositors to have to spread their money” into different accounts to ensure coverage. In a statement sent to the Financial Post, an official from the department of finance said that the safeguards currently in place were “stringent” to “ensure that the deposit insurance framework continues to meet the key objectives of protecting Canadians’ savings, securing the trust and confidence of depositors, and supporting the stability of Canada’s financial system.”
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