EQ Bank CEO on CDIC coverage | General financial discussion | Discussion forum

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He'll get no argument there ❗❗

Given that $100K in today's $$$ is Chicken Feed, I'd like to see the CDIC limit increased to At Least $500K.

'Course that ain't gonna happen in my lifetime, but I can always dream.

Dean

EQ has a vested interest in seeing CDIC limits raised since second tier banks don't have the same confidence (safety of deposits) from the average consumer that the big 6 banks do. The big 6 would rather there be no CDIC insurance for them because it is simply not needed with AA rated mega-institutions and they would save on CDIC premiums. They clearly don't want to pay premiums for $200k of deposit insurance as an example.

OTOH, it is particularly important for the average investor/consumer to have higher CDIC insurance in privately held FIs that are opaque in their financial disclosures (and lack of credit ratings) like People's and Wealth Bank of Canada, and for ones like Home Trust/Oaken that are barely investment grade and about to go private later this year.

If the Feds were to announce higher CDIC insurance limits, CDIC would have to bulk up its assets to take on the risk of higher insurance exposure.

This is an issue for a tiny fraction of people, outside of them no-one cares.

On the other hand, it's ludicrous to me to have $100K limit for RRSP/RRIF accounts, forces people who don't have brokerage accounts to spread among various institutions. Of course it helps the big banks as people are comfy going over the limits with them so that maybe keeps a lot of RRSP/RRIF deposits with them. So maybe that's what's behind this issue never catching fire.

Many, if not most, provincial credit union insurance programmes provide unlimited insurance for registered funds.

In 1967, I doubt very much that most people had 20K in the bank, but CDIC covered that much anyway. My parents certainly didn't; that was about the value of their Toronto house at that time. I remember that because it was when theey split up and assets were documented

250k I think is what the CDIC rate should be . Years ago to be a millionaire was few and far between, yet today it's quite common . The rate needs to go up and the banks can afford the rates ,they have been making grossly huge profits for years, so much the Federal liberals have dumped a new tax on them.

Increase is not really needed.

The Big Five banks have figured a way to multiply CDIC coverage and avoid having to educate depositors about their strong debt ratings.

EQ Bank (that's really Equitable Bank) now has four CDIC members in its corporate family:

1. Equitable Bank
2. Equitable Trust
3. Concentra Bank
4. Concentra Trust

Must be someone there who can put the four pieces together to offer $400,000 of CDIC coverage.

Maybe the EQ Bank person should talk with their colleague running their deposit broker channel. For some reason, through deposit brokers, "All of our GICs are available through Equitable Bank, and its wholly owned subsidiary, Equitable Trust."

cgouimet said

With a spouse, you can make non-Registered coverage $1.2MM by each having individual accounts and then joint accounts ...

Then, $100k each in each Registered category (TFSA, RRSP, RRIF, RESP, RDSP)

  

While it is true $1.2mm is now CDIC insured, I still dont want the off chance the name goes belly up and dont know how long the funds will be tied there.

I rather have $250k limit at 5 FIs and distribute it that way.

mechone said
250k I think is what the CDIC rate should be . Years ago to be a millionaire was few and far between, yet today it's quite common . The rate needs to go up and the banks can afford the rates ,they have been making grossly huge profits for years, so much the Federal liberals have dumped a new tax on them.  

Anyone else remember the TV quiz show "The $64,000 Question"? It was a game show, very popular, where the ultimate jackpot, rarely achieved, was $64K. It ran in the late 1950s or early '60's. Back then, this was an enormous amount of money, which is what made the show so popular. The title became a colloquial expression to express very difficult conundrums.

It's really nothing. Federal government will cover it by returning some of the billions of dollars of profit that Bank of Canada used turn over each year to the federal government.

This has been Bank of Canada's the comprehensive income the past few years in millions of dollars:

2016 1,057.6
2017 937.7
2018 1,245.9
2019 1,173.3
2020 1,821
2021 2,810

There is talk now that maybe central banks in the world should be allowed to retain some of their yearly profits.

Norman1, I'm aware the money stuff is all smoothed over, my question is really about why, why after 87 years, including Great Depression and WWII, of this never once happening, has it happened now?