It was October 2009 when I posted ‘who will be the last bank without an iphone app’. For Canada I should have said who will be first, and its been a long time coming but it is CIBC. After an initial delay in December, it is released today. No bill payment yet, but it does have EMT (Canadian p2p payments between participating banks). Kudos to CIBC. Technorati Tags: cibc,iphone,app,app store Continue reading CIBC release first Canadian bank iphone app
Canada has been receiving kudos for a job well done throughout the crisis of the lest 2 years. This analysis from Bank of Canada has a telling paragraph (highlighted) that suggests there are good classic economic reasons for Canada being where it is, and over-confidence would be a bad idea. The Power of Many: Assessing the impact of Global Fiscal Stimulus | Bank of Canada Table 4 shows that, on a regional basis, the United States, as a large and relatively less open region, benefits the least from a global stimulus. Moreover, the impact of different measures depends on its … Continue reading The impact of global fiscal stimulus is good for Canada | Bank of Canada
After my last post, I thought it better to follow up with some facts to support my contention that this economic recovery is L shaped in Canada and US. This is not meant to be an economic projection, and I leave that to the professional economists. However in terms of planning, banks ought to consider the high probability of a scenario where the reduction in economic activity will level off but hardly see growth in the near future. This will be driven by consumer confidence and frankly their financial circumstances. If we go back to the root cause of the … Continue reading Consumer mindsets in North America have shifted permanently with regard to finances
An interesting survey of business reaction to the crisis, and which countries are least impacted. Full ranking follows the map. This explains a lot in terms of peoples reactions. Time will tell if this reaction remains constant, and what were the contributors to and rivers of this reaction. Countries that are Least Affected by Recession | digital inspiration The data is based on the results of a business confidence survey that was done on international business people of 24 nations to identify which countries they believe are surviving the crisis the best. Researched by Nobuyo Henderson Continue reading Countries that are least affected by the Economic Crisis
The IMF have released their working papers following their analysis of Canadian Banks. Notwithstanding the positive comments about Canadian banks financial position entering the crisis, there remains potential for a requirement for increased capital as negatives in Canada could decrease bank capital by 2.5% – 3.5% over next year or two. The IMF employed the American stress test approach to Canadian banks in this exercise. Here is the current position: There are two ratios being watched – Tier 1 and Total Capital. In a nutshell and worst case scenario, IMF are saying if 2.5% or 3.5% is taken off either … Continue reading Canadian banks will require more capital to remain within targets
This 21 page document reviews the circumstances prior to the crisis of Canadian Banks and other OECD Banks. The relative abundance of retail deposits (compared to more volatile wholesale deposits) seems to have been key for the resilience of Canadian banks, supplemented by a risk averse financial culture. The differences from the summary were as follows – Canadian Banks were: better capitalised Capital ratios before the crisis were a key determinant of bank performance during the turmoil; and Canadian banks had ample capital more liquid Compared to OECD peers, Canadian banks had slightly above-average balance sheet liquidity enjoyed relatively more … Continue reading What makes Canadian Banks different in this crisis? | OECD
There appears to be little more than speculation, and floating of ideas here, but nonetheless Virgin have just announced intention to launch a direct bank in UK, and Branson has noted his broad intention to get more involved in financials services. Something to keep our eyes on. A move such as this is good for financial services, and good for the broader industry including system vendors, such as my friends at SIT, because any new set up will need the flexibility of a web based approach coupled with solid banking and investment systems. Virgin’s next chapter: Is now the time … Continue reading Speculation mounts about Virgin next move for banking in Canada
The general theme that the ‘Canadian Bank model’ is superior has constantly intrigued me, having been personally involved there. Size and Diversification: They are smaller and less diversified, so some risk mitigation appears there. This is probably the biggest reason. Number: There are only five of them, of any consequence, so a couple of regulators can do a lot of supervision there. Loan restriction: there is a restriction on loan participation relative to capital. Purdy Crawford/ Pan Canadian Investments: The Canadian government did presciently freeze $35 billion in derivatives back in 2007. But no … in aggregate there is no … Continue reading The Canadian bank model secret? | risk aversion
Bank of Canada has released its quarterly Monetary Policy report. It is useful here in the context of Canada and the impact on consumers, particularly as Canada has been painted as being in better shape than other countries. Consumer confidence represented by purchasing is down, but consumer credit is still growing at a slower pace. They question will be to what extent credit defaults arise over upcoming months. Speech and Report: Global industrial production has fallen sharply … … and Canadian GDP has fallen sharply too, and worse than predicted earlier .. … while the Canadian hit on wealth has … Continue reading Bank of Canada Monetary Policy Report Apr 2009 sees economy worse that projected, but consumer credit is growing
Something has been bothering me for some time, and now the planets are beginning to align. One of the promises of Internet is a future which is more efficient. This literally means less money changing hands to get things done. hohoto.ca can occur with zero overt marketing costs, based on personal contribution of willing advocates. Costs do not go to zero – it is not that simple – but costs are less than before by a considerable margin. The Spider and the Starfish touched on this point in 2006. “as industries become decentralised, overall profits decrease” My summary at that … Continue reading A new future based on a different revenue model is needed for banks
Bankwatch 