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>What now? for starters adopt a Canadian style banking model. The country largely runs on 5 very tightly regulated banks that haven't gone bankrupt in a hundre
by Barrin92 4y ago
>What now?
for starters adopt a Canadian style banking model. The country largely runs on 5 very tightly regulated banks that haven't gone bankrupt in a hundred years. These regional banks fall over in every little crisis and they always end up being bailed out anyway (see SV bank), so you might as well consolidate the sector for good.
- Scoundreller 4y agoLots of credit unions in Canadian traditional finance (taking deposits, making loans), and they haven't been failing left and right. I think a bigger diff is that Canada doesn't do 15/20/25 year fixed rates. Usually at most 5 years fixed and then you renegotiate and see what you can do. And a lot of variable rates.
- johngladtj 4y agoWait are you advocating for monopolies?
- Barrin92 4y agoYes. Large banks are more diversified in their portfolios, perform better, are more resilient and easier to regulate and audit by the state.
- tekknik 4y agoThe size of a bank has nothing to do with portfolio diversification. You can, as an individual, keep a well diversified portfolio of $100. Perform better is objective since you provided no metric for anybody to compare, same with resiliency. Auditing can be done electronically, even via AI now. It sounds like you’re saying since they have more monetary resources they are more stable, which is true for large companies. Banks don’t own their assets though, a customer can come at any time and remove money. In fact this was rumored to happen in Canada last year, where your 5 major banks went offline after Trudeau opened his mouth about the Freedom Convoy.