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The federal deposit insurance in Canada is the same (cdic). The relevant legislation explicitly says the government has no obligation to bail out the insurance
by acover 4y ago
The federal deposit insurance in Canada is the same (cdic). The relevant legislation explicitly says the government has no obligation to bail out the insurance fund.
Practically the fund doesn't have sufficient funds to bail out a big bank failure - let alone multiple - and everyone expects a government bailout.
- rkagerer 4y agoThe Federal government can rely on printed money to cover Big Five bank failures. In BC, how would the government fund a bailout if several Credit Unions collapsed at the same time?
- acover 4y agoWhere there is a will, there's a way. The us federal reserve bought corporate bonds during the covid crisis. Can you imagine the fallout of a bank run on all credit unions? The federal government would find a way to prevent that.