Are Canadian Banks INSOLVENT? If People Withdrew Their MONEY, Is It GAME OVER!?

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I thought I should take a quick look at Canada's solid banks to see how well they might fare if 20% of their deposits was withdrawn in one day. It shows that they would have to close quite fast as they have 90% or less of the deposits available in cash.

To elaborate on why that looks at how fractional reserve banking works! Out of a $100 deposit, the banks can through fractional reserve lending create $1000 now what is the $100 in a percentage of $1000? 90% and that entails that the Canadian banks are way beyond fractional reserve lending. They use what the Bank of Canada calls a zero reserve policy https://www.bankofcanada.ca/1997/04/working-paper-1997-8/ which I mention in my latest book on the Canadian economy: https://www.amazon.ca/Canada-Greatest-Economy-World-Yourself-ebook/dp/B073V5R72H

With Canadian banks looked upon as some of the strongest in the world. I wanted to show you how they operate and don't have any of their liabilities your deposit available for withdrawal if 10% or more took out their deposits at once. It would create a bank run which has happened 1000's of times throughout history and the movie It's A Wonderful Life gives us a tale of how a bank run starts and how they can and most likely will bankrupt the bank as their scheme is exposed!

Below is an expose of the bank's holdings pulled from their most recent available balance sheets!

rbc-logo.png
RBC Deposits:
$647,516,000,000
RBC Cash on Hand:
$28,407,000,000
Cash To Deposit Ratio:
95.61% of Deposits not covered
http://www.rbc.com/investorrelations/pdf/ar_2017_e.pdf

TD-logo.png
TD Bank Deposits:
$886,880,000,000
TD Bank Cash on Hand:
$3,970,000,000
Cash To Deposit Ratio:
99.55% of Deposits not covered
https://www.td.com/investor-relations/ir-homepage/financial-reports/quarterly-results/qr-2017.jsp

bmo-logo.png
BMO Deposits:
$352,381,000,000
BMO Cash On Hand:
$32,559,000,000
Cash To Deposit Ratio:
90.76% of Deposits not covered
https://www.bmo.com/home/about/banking/investor-relations/annual-reports-proxy-circulars

logoCIBC03.jpg
CIBC Deposits:
$163,833,000,000
CIBC Cash On Hand:
$3,440,000,000
Cash To Deposit Ratio:
97.90% of Deposits not covered
https://www.cibc.com/content/dam/about_cibc/investor_relations/pdfs/quarterly_results/2017/ar-17-en.pdf

national_bank_of_canada_logo.png
National Bank Deposits:
$245,827,000,000
National Bank Cash On Hand:
$8,808,000,000
Cash To Deposit Ratio:
96.42% of Deposits not covered
https://www.nbc.ca/content/dam/bnc/en/about-us/investors/investor-relations/annual-reports-proxy-circulars-aif/nbc-annual-report-2017.pdf

Caisses-populaires.png
Caisse Populaire Deposits:
$1,341,117,838
Caisse Populaire Cash On Hand:
$65,842,721
Cash To Deposit Ratio:
95.09% of Deposits not covered
http://www.caisse.biz/wp-content/uploads/2018/01/Caisse-Financial-Group-Annual-Report-2016-17.pdf

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Bank of Nova Scotia Deposits:
$585,020,000,000
Bank of Nova Scotia Cash on Hand:
$7,830,000,000
Cash To Deposit Ratio:
98.66% of Deposits not covered
https://www.marketwatch.com/investing/stock/bns/financials/balance-sheet

Desjardins_Financial_Security_Logo.JPG
Desjardins Group Deposits:
$160,546,000,000
Desjardins Group Cash On Hand:
$1,876,000,000
Cash To Deposit Ratio:
98.83% of Deposits not covered
https://www.desjardins.com/ressources/pdf/d50-rapport-gestion-mcd-2016-t4-e.pdf?resVer=1488556863000

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HSBC Bank of Canada Deposits:
$56,537,000,000
HSBC Bank of Canada Cash On Hand:
$49,000,000
Cash To Deposit Ratio:
99.91% of Deposits not covered
https://www.newswire.ca/news-releases/hsbc-bank-canada-reports-third-quarter-2017-financial-results-654033853.html

canadian_western_bank.jpgCanadian Western Bank Deposits:
$21,902,982,000
Canadian Western Bank Cash on Hand:
$17,491,000
Cash To Deposit Ratio:
99.92% of Deposits not covered
http://www.cwbankgroup.com/~/media/cwb%20group/documents/investor%20relations/annual%20reports/cwb_2017_ar_fs_fin.pdf

Laurentianlogo.jpg
Laurentian Bank of Canada Deposits:
$28,930,360,000
Laurentian Bank of Canada Cash On Hand:
$327,362,000
Cash To Deposit Ratio:
98.86% of Deposits not covered
https://www.laurentianbank.ca/pdf/367_002_RAP_2017_EN_Vf3.pdf

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