There is starting to be a domino effect on financial institutions around the world such as:
- New York Signature Bank
- Credit Suisse International
Both of these announcing financial problems. This domino effect will continue to happen because regulators are reviewing all bank financials large and small around the globe. This is a good thing.
Ontario Security Commission is requesting daily input from all Canadian bank financials.
The banks in Canada are showing that they are financially solvent. Canada has good regulations in place for financial institutions.
From a positive point of view, I would like to share some information and backup that we have in Canada:
- Canada Deposit Insurance Corp. (CDIC) – protects depositors’ monies up to $100,000 for different accounts
- Assuris – a nonprofit under Canadian Federal regulation that protects policyholders at least 85% of their insurance benefits that they’ve been promised should an insurer become insolvent*
- Life Insurance Capital Adequacy Test (LICAT) – Insurance company which measures a company’s ability to meet obligations to its policy holders. This means an insurance company has to have reserves above and beyond their existing cash accounts.
*If you would like more information, we have backup support we can send to you as well as websites for you to read more about these insurance guarantees.
Markets will continue to be volatile with swings up and swings down until all financial information is brought forward.
On a positive note, some of these company’s stock values are going down dramatically and there are some individuals and companies standing by to buy these companies – very confusing.
Strategy: Start buying investments on a monthly basis
Over the past 100 years these events have happened before under different circumstances and as I mentioned on Monday, the powers that be will sort this all out. They will assess all companies’ risk management style and make adjustments. I encourage all clients to reassess their retirement plan.
