Federal Budget: CDIC Act to be modernized | Page 2 | General financial discussion | Discussion forum

Loonie said
I received a consumer satisfaction survey today from one of the CDIC-insured FIs that is on our charts.
One of the questions stated that CDIC is thinking about raising the insurable TERM LIMITS. That would be a broadening of "scope" and probably wouldn't cost the banks any more (per $ per year). It just ties up your money longer, for better or worse.
Considering that the MB CUs that offer insured 6 and 7 yr GICs are not giving particularly good rates on them, it doesn't sound very helpful at the moment or in any rising-rate environment.  

Good comment about it not being very helpful (to us, as consumers) in a potentially rising rate environment, Loonie.

I noted the same survey and I think you're on to something. At best, that's likely what's on offer and when you think about it, in light of the Home Capital Group liquidity issue a year and a half ago, would please both the regulators and the banks.

That said, I'm a firm believer that the BoC has another 25-50 bps, at most, before rising interest rates become damaging to the Canadian economy. I'm now predicting that by winter 2020, at the latest, we'll be back into a declining rate environment, at least for the short- to medium-term from that point.

Cheers,
Doug